The rapid expansion of artificial intelligence (AI) data centers is fundamentally reshaping global electricity demand. To this end, Gartner projected last year that global data center electricity consumption would rise from 448 terawatt-hours in 2025 to 980 TWh by 2030, with the share of AI-optimized servers in data center power consumption expected to double during that period.
This unprecedented power demand surge is reviving nuclear energy as a critical solution, with BloombergNEF projecting global nuclear capacity to climb 44% over the next decade, reaching as much as 535 gigawatts by 2036.
For investors seeking to capitalize on this structural shift, nuclear exchange-traded funds (ETFs) offer a diversified gateway to the companies at the heart of this renaissance.
But before we jump into the specifics of these ETFs, it is crucial to understand how the connection between the AI data center boom and surging nuclear power demand is becoming increasingly direct and tangible, as well as why investors may consider ETFs over individual nuclear stocks.
How Is the AI Data Center Boom Accelerating Nuclear?
With AI data centers driving an unprecedented surge in electricity demand, nuclear energy has emerged as one of its most critical power sources because it provides reliable, 24/7 baseload power — unlike intermittent renewables.
This reliability is driving massive corporate commitments from hyperscalers, the funding lords of AI infrastructure. For instance, Meta secured 6.6 gigawatts of nuclear power through deals with Vistra VST, TerraPower and Oklo earlier this year.
On the other hand, Constellation Energy CEG is restarting Three Mile Island's Unit 1 under a 20-year agreement with Microsoft, with an aim to restore 835 megawatts to the grid by 2027.
Meanwhile, regulatory support is accelerating the trend of robust nuclear energy expansion across the United States, with the Trump administration actively pushing for new reactor construction. A prime example of such regulatory backing is the signing of a landmark 30-year, multi-billion-dollar civilian nuclear agreement between the United States and Saudi Arabia this July, which opened the door for U.S. companies to build Saudi Arabia’s nuclear infrastructure, including potential uranium enrichment capabilities.
The AI data center boom is transforming the nuclear energy industry from a stagnant sector into one attracting billions of dollars in investment, supported by long-term contracts and growing political backing, potentially making it one of the defining energy stories of the decade.
Why ETFs May Be the More Prudent Path
While companies like Constellation Energy, Cameco CCJ, and Oklo Inc. OKLO are gaining prominence due to the AI boom, concentrating investments in a handful of individual nuclear stocks exposes investors to significant single-company risks.
A single regulatory setback, construction delay, or operational disruption at one plant can devastate an individual stock.
Nuclear ETFs mitigate this risk by providing instant diversification across the entire nuclear value chain — from uranium miners and fuel suppliers to utility operators and reactor technology providers. An ETF holding dozens of companies ensures that exposure to the industry’s growth is not derailed by the inevitable volatility of any single player.
Nuclear ETFs to Bet on
Considering the aforementioned discussion, investors may consider adding the following nuclear ETFs to their portfolios today:
VanEck Uranium and Nuclear ETF NLR
This fund, with net assets worth $3.74 billion, offers exposure to 28 companies involved in uranium mining; the construction, engineering and maintenance of nuclear power facilities and nuclear reactors; the production of electricity from nuclear sources; or providing equipment, technology and/or services to the nuclear power industry. CCJ (with 8.20% weightage), CEJ (7.79%) and Public Service Enterprise Group Inc (7.56%) hold the first three spots in this fund.
Oklo holds the seventh spot in this fund, with 5.01% weightage. NLR charges 52 basis points (bps) in fees and traded at a volume of 0.27 million shares in the last trading session.
Range Nuclear Renaissance Index ETF NUKZ
This fund, with net assets worth $715.3 million, offers exposure to 52 companies that are involved in the following segments: advanced reactor, utilities, construction & services, and fuel. CCJ (9.31%), OKLO (3.38%) and GE Vernova (3.13%) hold the first three spots in this fund.
VST holds the ninth spot in this fund, with 2.83% weightage. NUKZ charges 85 bps in fees and traded at a volume of 0.14 million shares in the last trading session.
First Trust Bloomberg Nuclear Power ETF RCTR
This fund, with net assets worth $29.8 million, offers exposure to 52 companies engaged in nuclear-related activities. Hitachi Ltd (5.67%), Doosan Enerbility (5.04%) and CEG (4.92%) hold the first three spots in this fund.
CCJ holds the seventh spot in this fund, while VST holds the eighth spot, both with 4.30% weightage. RCTR charges 70 bps in fees and traded at a volume of 0.001 million shares in the last trading session.
Themes Uranium & Nuclear ETF URAN
This fund, with a net asset value of $36.25, offers exposure to companies that derive their revenues from uranium mining, explorations, refining, processing, and royalties, as well as nuclear energy, equipment, technology, and infrastructure. CCJ (8.51%), CEG (7.70%) and NAC Kazatomprom JSC (4.32%) hold the first three spots in this fund.
OKLO holds the eighth spot with a 2.88% weightage. URAN charges 35 bps in fees and traded at a volume of 0.003 million shares in the last trading session.
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Constellation Energy Corporation (CEG): Free Stock Analysis Report
VanEck Uranium and Nuclear ETF (NLR): ETF Research Reports
Vistra Corp. (VST): Free Stock Analysis Report
Range Nuclear Renaissance Index ETF (NUKZ): ETF Research Reports
Oklo Inc. (OKLO): Free Stock Analysis Report
Themes Uranium & Nuclear ETF (URAN): ETF Research Reports
First Trust Bloomberg Nuclear Power ETF (RCTR): ETF Research Reports
Cameco Corporation (CCJ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).