Nuclear energy is attracting renewed attention as governments, infrastructure operators and major electricity users reassess how to meet rising power demand while improving energy security and reducing carbon emissions. After years in which new nuclear development slowed in many markets, the technology is again becoming part of long-term energy planning.
The change reflects a combination of pressures across the global power system. Electricity demand is increasing as economies electrify transport, heating and industrial processes, while data centres and artificial intelligence are adding further demand for dependable power. At the same time, countries are seeking to reduce reliance on fossil fuels and strengthen the resilience of domestic energy supply.
Nuclear power offers characteristics that can support these objectives. It can generate large amounts of electricity continuously, operates with low greenhouse gas emissions during power production and can provide a stable source of supply alongside renewable technologies. These features have increased its relevance in discussions about how future electricity systems should be structured.
More than 20 countries committed in 2023 to work towards tripling global nuclear energy capacity by 2050. As of 2024, 417 reactors were operating across 31 countries and supplied around 9% of global electricity. The scale of the existing fleet provides an established base, while new technologies are expanding the range of options available for future deployment.
Small modular reactors, commonly known as SMRs, are a significant part of this development. They are designed with lower generating capacity than traditional large reactors and are intended to make greater use of modular manufacturing and construction methods. Supporters see potential applications in national grids, industrial facilities and other sites requiring reliable electricity, including data centres.
The renewed interest in nuclear energy does not remove the sector’s longstanding challenges. Large nuclear projects require significant capital, complex engineering and lengthy approval processes. Construction delays and cost overruns have affected a number of projects in the United States and Europe, highlighting the importance of project discipline, regulatory certainty and realistic development schedules.
Advances in engineering, materials, digital modelling, artificial intelligence and autonomous inspection may improve how nuclear assets are designed and managed. These technologies could support better monitoring, more efficient maintenance and improved understanding of structural and operational risks, although they remain subject to the sector’s strict regulatory requirements.
Geiger Counter Limited (LON:GCL) is a Jersey closed-end investment company, which invests in uranium exploration and production stocks.
