Three different approaches to nuclear power – from small reactors to established utilities to advanced fuel technology – could help realize big tech’s AI ambitions.
The artificial intelligence (AI) revolution is driving an unprecedented increase in energy demand. The International Energy Agency predicts that data centers could provide a third of the expected increase in U.S. electricity demand between 2024 and 2026.
Major technology companies are making bold moves into nuclear energy to meet their growing energy needs. Microsoft (MSFT 0.80%) recently signed a twenty-year contract Constellation Energy (CEG -0.03%) to power its data centers Amazon has strategically positioned a $650 million data center near the Susquehanna nuclear power plant in Pennsylvania. AlphabetGoogle’s parent company, has joined this nuclear renaissance by investing in advanced nuclear technologies, including fusion energy.
Image source: Getty Images.
These strategic investments indicate that nuclear energy has become the solution of choice for the enormous energy needs of technology giants. Armed with this background, let’s examine three nuclear energy stocks that could fuel the AI revolution.
The little reactor pioneer
Okay (OKLO 5.81%)backed by Sam Altman, CEO of OpenAI, has become a leader in next-generation nuclear technology. The company’s shares have delivered a remarkable 113% return since their public debut last May, significantly outperforming the benchmark. S&P500.
OKLO data by YCharts
The company specializes in the development of advanced small modular reactors (SMRs), which promise enhanced safety features and operational flexibility in a compact design. Oklo’s innovative Aurora power plants are expected to become operational in 2027, allowing the company to meet rising demand for reliable clean energy from technology companies expanding their AI activities.
Early investors have shown great confidence in Oklo’s potential, despite the fact that it will take several years to see meaningful revenue. But like most nuclear technology companies that are not yet turning a profit, investors should expect significant price fluctuations on the path to commercialization.
A proven nuclear partner
As mentioned, Constellation Energy recently signed a groundbreaking twenty-year deal with Microsoft to restart a reactor on Three Mile Island. This landmark agreement signals growing confidence in the role of nuclear energy in the AI revolution.
The market has responded enthusiastically to Constellation’s strategic moves in the nuclear space, sending its shares up more than 126% this year, easily outperforming the S&P 500. The company’s position as the largest nuclear operator in the US gives it a significant advantage in working with technology giants seeking stable, carbon-free energy.
With its extensive nuclear infrastructure already in place and proven operational expertise, Constellation stands out as a natural partner for technology companies racing to secure reliable energy sources for their AI operations. This unique market position, combined with growing demand from the technology sector, creates an attractive growth path for the company and its shareholders.
Innovation in nuclear fuel
Light bridge (LTBR 23.95%) revolutionizes nuclear fuel technology with its metal fuel design. The company’s innovative approach could significantly improve the efficiency and safety of existing and future nuclear reactors.
This advanced fuel technology could be particularly valuable as data centers drive unprecedented demand for reliable energy. Lightbridge’s next-generation fuel design promises to increase power in existing reactors while increasing safety margins, making it an attractive solution for utilities meeting the growing energy needs of technology companies.
The stock, like other nuclear technology companies, has soared as investors recognize the sector’s critical role in meeting the escalating energy demands of AI data centers. While Lightbridge’s stock has significantly outperformed the S&P 500 this year, the company represents a unique approach to nuclear innovation through improved fuel efficiency that should keep its shares racing higher.
Powering the future
These three companies represent different aspects of the nuclear energy renaissance, from Oklo’s innovative reactor designs to Lightbridge’s improved fuel technology and Constellation’s established infrastructure. Each stock offers investors a unique way to participate in the nuclear energy revival, making them worth considering as part of a well-diversified portfolio.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. George Budwell has positions at Microsoft. The Motley Fool holds positions in and recommends Alphabet, Amazon, Constellation Energy and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
