Nuclear power witnessed a dramatic shift in narrative over the last few decades. Following major historical incidents such as the Fukushima disaster, atomic energy's share of the global electricity mix steadily declined from roughly 18% in the late 1990s to just 9% in recent years. However, over the past couple of years, the enormous and growing electricity demand from power-hungry data centers, fueled by the artificial intelligence (AI) boom, has reversed the trend.
As utilities scramble to add generation capacity, nuclear energy has stepped up alongside renewables and natural gas as a critical pillar of grid stability. With global data center power demand expected to surge 175% by 2030 compared to 2023 levels, as estimated by Goldman Sachs Research, renewables and natural gas are likely to absorb a large portion of this growth. However, the need for reliable 24/7 carbon-free baseload power has made nuclear energy increasingly indispensable.
Momentum in the nuclear energy market is lifting companies across the sector, including power generators like Constellation Energy CEG and uranium miners and fuel suppliers such as Cameco CCJ and Centrus Energy LEU. This trend is expected to continue to boost the performance of nuclear exchange-traded funds (ETFs) with exposure to these companies.
Navigating this atomic transition requires a clear understanding of the market's underlying mechanics. Below, we examine the historical factors that previously slowed nuclear generation, the structural demand driving its current outlook, and the risks investors must consider before evaluating the specific ETFs positioned to benefit.
The Fall & Rise of Nuclear
The historical retreat from nuclear energy was primarily caused by public opposition and strict regulatory frameworks following major incidents, especially at Three Mile Island, Chernobyl and Fukushima. These events severely stalled industrial momentum, causing diminished supply-chain know-how, severe cost overruns, and prolonged construction timelines that made conventional large-scale atomic plants financially risky.
However, nuclear power has recently regained momentum amid an unprecedented surge in electricity demand. As per the World Nuclear Association, nuclear reactors worldwide generated 2,667 terawatt-hours (TWh) of electricity in 2024, marking the highest annual output from nuclear energy and surpassing the previous record of 2,660 TWh set in 2006.
Currently, global nuclear power generation is accelerating rapidly, driven by reactor restarts in Japan, the commissioning of new reactors in China, India, South Korea, and other countries, as well as strong output in the United States and France. As highlighted in the International Energy Agency’s (IEA) Global Energy Review 2026 report, nuclear reactors representing a combined capacity of roughly 78 GW are actively under construction across 15 countries.
While much of this global baseline capacity was initiated to satisfy overall economic growth and decarbonization goals, the modern trajectory is increasingly being driven by the tsunami wave of AI infrastructure build-out. Because modern data centers experience immense costs from any operational downtime, intermittent sources like wind and solar cannot meet their strict 24/7 reliability mandates alone. Nuclear plants, operating at maximum capacity over 90% of the time, provide the perfect high-density, zero-emission baseload alternative.
What Lies Ahead for Nuclear?
The long-term outlook for the nuclear power generation industry remains exceptionally robust, with the International Atomic Energy Agency (“IAEA”) estimating global nuclear operational capacity to more than double by 2050 – reaching 2.6 times the 2024 level. Key innovations like Small Modular Reactors (SMRs) with their promise of offering cheaper, faster-to-build plants are expected to play a pivotal role in this expansion.
However, the industry still faces several headwinds, including cost overruns, supply-chain constraints, regulatory challenges, and the likelihood that most next-generation reactors will not achieve meaningful commercial scale until the 2030s.
Nuclear ETFs to Gain
Considering the aforementioned discussion, investors focusing on diversified ETFs, with exposure to both uranium miners and established utility operators, rather than those seeking exposure to single-company risk, should remain more insulated from volatilities like localized plant operational disruptions or sudden commercialization delays for a specific SMR developer.
Against this backdrop, investors seeking to capitalize on nuclear’s rally should monitor the following funds:
VanEck Uranium and Nuclear ETF NLR
This fund, with net assets worth $4.80 billion, offers exposure to 29 companies involved in uranium mining?? the construction, engineering and maintenance of nuclear power facilities and nuclear reactors?? the production of electricity from nuclear sources?? and providing equipment, technology and/or services to the nuclear power industry. CEG holds the first position in this fund, with 8.24% weightage.
NLR has gained 5.4% year to date. The fund charges 52 basis points (bps) as fees.
Range Nuclear Renaissance Index ETF NUKZ
This fund, with net assets worth $857.2 million, offers exposure to 46 companies that are involved in the nuclear fuel and energy industry. CCJ holds the first position in this fund, with 9.70% weightage.
NUKZ has risen 11.4% year to date. The fund charges 85 bps as fees.
Themes Uranium & Nuclear ETF URAN
This fund, with net asset value of $42.44, offers exposure to 41 companies that derive their revenues from uranium mining, exploration, refining, processing, and royalties, as well as nuclear energy, equipment, technology, and infrastructure. CCJ holds the first position in this fund, with 9.08% weightage.
URAN has risen 2% year to date. The fund charges 35 bps as fees.
First Trust Bloomberg Nuclear Power ETF RCTR
This fund, with net assets of $23.3 million, provides exposure to 46 companies, including regulated utilities and merchant power producers that operate nuclear generation assets. It also includes companies involved in mining and enrichment of uranium for use in nuclear fuel as well as those engaged in engineering or construction services for nuclear power plants, reactor manufacturing, managing nuclear waste, or providing other equipment or services for nuclear power generation. BHP Group holds the first position in this fund, with 5.31% weightage.
RCTR has rallied 10.8% year to date. The fund charges 70 bps as fees.
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Constellation Energy Corporation (CEG): Free Stock Analysis Report
Cameco Corporation (CCJ): Free Stock Analysis Report
VanEck Uranium and Nuclear ETF (NLR): ETF Research Reports
Centrus Energy Corp. (LEU): Free Stock Analysis Report
Range Nuclear Renaissance Index ETF (NUKZ): ETF Research Reports
Themes Uranium & Nuclear ETF (URAN): ETF Research Reports
First Trust Bloomberg Nuclear Power ETF (RCTR): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).