Nuclear Energy Stocks Surge Amid AI Power Boom: Oklo and NuScale Lead the Charge

The rapid proliferation of artificial intelligence (AI) technologies is significantly increasing the energy consumption of large data centers, triggering new quests in global energy markets. According to the International Energy Agency (IEA), global electricity consumption for data centers is projected to more than double by 2030, potentially reaching 945 terawatt-hours (TWh) annually. This immense demand necessitates reliable, continuous, and carbon-free energy sources, repositioning nuclear power as a strategic solution.

In this context, advanced nuclear technology companies such as Oklo Inc. (OKLO) and NuScale Power Corporation (SMR) are drawing attention with their small modular reactors (SMRs) and advanced fission power plants. Oklo is developing fast-fission microreactor designs, which it calls Aurora Powerhouses, and stands out for its capability to recycle used nuclear fuel. The company has signed an agreement with Meta Platforms (META) to develop a 1.2-gigawatt nuclear power campus in Ohio and also holds master power agreements with major data center operators like Switch. NuScale Power, on the other hand, is notable as the first and only company to have its SMR design approved by the U.S. Nuclear Regulatory Commission (NRC). Each NuScale Power Module can generate up to 77 megawatts of electricity, and the company is involved in projects such as the RoPower plant in Romania and the ENTRA1 initiative with the Tennessee Valley Authority (TVA).

The technologies offered by these companies have the potential to address the colossal electricity demand, which is one of the biggest challenges for AI data centers. Oklo's powerhouses can operate continuously for years, emit no carbon, and can be deployed where power is needed. This offers a significant advantage, particularly for data centers planned in rural areas that face existing grid connection issues. NuScale's SMRs provide "behind-the-meter" energy solutions that can be located directly adjacent to data centers, reducing transmission costs and enhancing energy reliability.

The resurgence of nuclear energy driven by AI demand is also influencing the market performance of these stocks. For instance, Oklo shares have surged by over 214% in the past year, while NuScale Power shares experienced a 23% decline during the same period. However, both companies are either pre-revenue or in early commercial stages. NuScale reported revenues of $31.5 million in 2025 but a net loss of $355.8 million. Oklo recorded zero revenue and an operating loss of $139.3 million in 2025. This presents a high-risk, high-potential investment opportunity for investors.

The combination of nuclear energy with global energy security concerns and carbon emission reduction goals is increasing interest in this sector. AI's energy demand in the U.S. is projected to more than double from 31 gigawatts in 2025 to 66 gigawatts by 2027. Tech giants like Microsoft and Meta are supporting this trend by signing 20-year agreements with nuclear operators to meet their data center electricity needs. These agreements underscore the ability of nuclear power plants to provide reliable, carbon-free baseload power.

Analysts indicate that the nuclear energy sector holds significant growth potential in the coming period due to AI-driven demand. For Oklo, Koyfin data shows that the majority of analysts recommend a 'buy' rating, with a 12-month average price target indicating an upside potential of approximately 18.7%. For NuScale Power, HSBC initiated coverage with a 'hold' rating and a $13 price target. Long-term power purchase agreements and progress in regulatory approval processes will be crucial for the future commercial success of both companies. However, high upfront costs, lengthy approval processes, and competition remain significant challenges for these firms.