Last week, a surprising market reaction caught some investors off guard: after Meta Platforms announced a massive expansion of its artificial intelligence infrastructure, several nuclear-energy stocks surged. The link might not be obvious at first glance, but the underlying energy economics offer a compelling explanation — and a glimpse into where long-term capital might be headed next.
AI Needs Power — Lots of It
Training advanced AI models and running inference at scale requires a staggering amount of energy. Meta’s push into generative AI, which now includes the development of open-source large language models and expanded data center investment, reflects a broader industry trend. AI leaders are building hyperscale infrastructure, often running tens of thousands of GPUs across vast server farms.
To put it into perspective, a single cutting-edge AI data center can consume more electricity annually than a small city. That power demand has put utility planning back in the spotlight — and raised serious questions about how to source stable, carbon-free baseload power.
Why Nuclear Is Back in the Conversation
Unlike wind and solar, nuclear energy offers continuous output regardless of time of day or weather. It’s also emissions-free, aligning with long-term climate goals for companies under pressure to meet sustainability targets.
Meta’s recent infrastructure roadmap includes plans to build or co-locate data centers in regions with zero-carbon energy grids, according to filings and public statements. That has reignited investor interest in utilities and developers focused on next-generation nuclear, including small modular reactors (SMRs) and advanced reactor designs already piloted in countries like Canada, France, and South Korea.
Following Meta’s announcement, shares of Constellation Energy, a leading U.S. nuclear operator, rose over 7%, while BWX Technologies, which supplies nuclear components, gained nearly 5%. The move was driven not by speculative hype, but by increased demand visibility from AI infrastructure growth.
What This Means for Investors
Meta isn’t alone. Microsoft and Amazon have both announced AI-specific infrastructure growth tied to carbon-free energy commitments. That opens the door for nuclear operators, engineering firms, and uranium producers to capture long-term demand.
While nuclear stocks remain volatile, the logic driving this latest rally is grounded in fundamentals. Power-hungry technologies need scalable, clean electricity — and nuclear is quietly becoming a practical answer.
For long-term investors, this marks a shift. Nuclear is no longer just a policy issue or a climate hedge. It’s becoming a tech-driven infrastructure play, one that sits at the intersection of energy resilience, environmental compliance, and exponential AI growth.