Nuclear ETFs surge 30% in 2026 as AI data center demand fuels renaissance

Nuclear energy is staging its strongest comeback in decades, with dedicated ETFs up more than 30% this year as AI data center power demand, energy security priorities, and bipartisan policy support converge to reshape the sector's investment case.

The two largest nuclear-focused ETFs — the VanEck Uranium and Nuclear ETF (NLR) and the Range Nuclear Renaissance Index ETF (NUKZ) — have each gained more than 30% year-to-date, outpacing the S&P 500 by a wide margin as hyperscalers pour nearly $800 billion into data center infrastructure this year.

"Nuclear is the only carbon-free baseload power source that can scale to meet AI's insatiable electricity demand, and the market is finally pricing that in," said a portfolio manager at a nuclear-focused fund.

China added 34 gigawatts of nuclear capacity during the time it took the US to complete a single new plant, Plant Vogtle in Georgia. President Trump has made nuclear energy a cornerstone of his energy agenda, while small modular reactors (SMRs) are gaining recognition as a national priority. NuScale Power, the only company with an SMR design approved by US regulators, is negotiating a potential 6-gigawatt deployment with the Tennessee Valley Authority.

The investment case rests on a structural shift: AI data centers consume far more energy than traditional computing, and intermittent renewables alone may not suffice. Nuclear offers the always-on, carbon-free profile that hyperscalers need, potentially redirecting billions in corporate power purchase agreements toward the sector.

China's Nuclear Buildout Exposes the US Gap

China's rapid nuclear expansion — 34 GW added versus one US plant completed in the same period — highlights the scale gap. The US now aims to close it. The Trump administration's focus on nuclear as a cornerstone of energy policy has created a more supportive regulatory environment, generating structural tailwinds for domestic developers. Small modular reactors, typically under 300 MWe and factory-built, are central to this push, offering a path to lower costs and faster construction timelines than conventional plants.

SMR Developers Face Divergent Paths to Revenue

Among publicly traded nuclear developers, NuScale Power (NYSE: SMR) and Nano Nuclear Energy (NASDAQ: NNE) represent contrasting approaches. NuScale, with its NRC-approved design using conventional low-enriched uranium (LEU), is seen as the nearer-term revenue play. Analysts project NuScale generating about $175 million in revenue by 2027, though the company posted a $355.8 million net loss in FY2025 on $31.5 million in revenue.

Nano Nuclear targets the portable microreactor niche with its KRONOS and ZEUS systems, using high-assay LEU (HALEU), enriched to 19.75% versus 3-5% for conventional reactors. The company generated no revenue in FY2025 and posted a $43.5 million net loss. Analysts do not project meaningful sales until 2030, when about $110 million in revenue is expected if commercialization proceeds on schedule.

Both companies carry significant execution risk. NuScale faces securities-fraud class-action lawsuits and lost a key strategic supporter when Fluor Corp. sold its entire stake in early 2026. Nano Nuclear must secure NRC licenses for its microreactor designs and integrate recent acquisitions, including Secured Transportation Services LLC, to maintain its timeline.

For investors seeking pure-play nuclear exposure, ETFs like NLR and NUKZ offer diversified access across the uranium fuel chain, reactor developers, and utility operators. The sector trades at elevated multiples relative to historical norms — NuScale at roughly 3x book value and Nano Nuclear at about 2x — reflecting the premium the market is placing on future AI-driven power demand. Whether those premiums are justified depends on execution: SMR developers must convert regulatory approvals and memorandums of understanding into binding commercial contracts, a milestone none has yet achieved.

This article is for informational purposes only and does not constitute investment advice.