Quote from Alex bobby on April 5, 2025, 4:58 AM

The AI Boom Is Driving a Nuclear Revival — But Can Supply Chains Keep Up?

As artificial intelligence (AI) accelerates global energy demand, the conversation around nuclear power has taken a sharp turn. What was once seen as a relic of the past, shadowed by disasters like Fukushima, is now hailed as a cornerstone of a cleaner, more stable energy future. At the heart of this nuclear revival are tech giants such as Amazon, Google, and Meta — companies whose massive data centres consume staggering amounts of power.

On the sidelines of a recent energy conference, these tech heavyweights joined a pledge to triple global nuclear power capacity by 2050, echoing similar commitments made by major banks and politicians at COP28. In total, 31 countries and 140 nuclear industry companies have signed on. With the AI revolution demanding always-on computing power and clean energy targets looming, nuclear is being reimagined as a scalable, reliable solution.

The Geopolitics of Enrichment

While about 9% of the world’s electricity currently comes from nuclear, the road to tripling that number isn’t straightforward — especially when it comes to the nuclear fuel supply chain. Unlike renewables, nuclear energy depends on complex steps: mining uranium, converting it, enriching it, and finally manufacturing usable fuel rods.

A major bottleneck lies in uranium enrichment — a process dominated by Russia, which holds 44% of global enrichment capacity. In 2023, Russia provided 27% of enriched uranium for U.S. reactors and nearly 38% for the EU. This dependency has drawn increasing scrutiny since Russia’s invasion of Ukraine and the resulting sanctions.

In response, the U.S. enacted a law in 2024 banning uranium imports from Russia, allowing only limited shipments until 2027. Russia retaliated with its own export ban, throwing the industry into deeper uncertainty.

While natural uranium supplies are widely diversified — with Canada, Australia, and Kazakhstan leading the charge — the enrichment stage remains a geopolitical chokepoint. As Benjamin Godwin of PRISM put it, “Conversion facilities can come online relatively quickly, but enrichment is a far bigger hurdle — and requires clearer, long-term policymaking.”

A Catch-22 for Supply Chains

The nuclear sector now faces a classic chicken-and-egg dilemma. Utilities are hesitant to invest in new nuclear projects without guaranteed fuel availability. Meanwhile, fuel suppliers are reluctant to expand unless they have long-term contracts in hand. This standoff is slowing the pace of infrastructure development just as demand begins to surge.

According to Craig Stover of the Electric Power Research Institute, the biggest constraints in the next decade will be around conversion, enrichment, and deconversion services — with enrichment being the most time-consuming to scale up. Based on current growth projections, enrichment demand could outstrip supply by 2035 if no major expansions occur.

Adding to the mix is uncertainty over tariffs. The Trump administration has proposed a 10% tariff on Canadian uranium imports, potentially raising U.S. prices overnight. Canada currently provides over a quarter of the U.S.’ uranium supply. Industry insiders warn that such moves risk creating volatility in an already fragile market.

A Renaissance Backed by AI

Despite these hurdles, nuclear power is enjoying a revival — in no small part due to AI. The rise of large language models and the energy-hungry infrastructure that supports them has pushed companies to seek out stable, low-carbon electricity sources. Nuclear ticks all the boxes.

Although some suggest that future AI models may become more energy efficient, Jamie Fairchild of the Nuclear Energy Association believes the broader demand curve is only going up. “AI and AGI will transform virtually every sector,” he said. “There will be few aspects of the economy untouched by it.”

The numbers back this up. The value of uranium-related companies has soared over 500% in the last five years, as confidence returns to the sector and public attitudes shift. While memories of Fukushima once stalled nuclear progress, climate concerns and AI-driven energy consumption are forcing a rethink.

The Long-Term View

Nuclear fuel has one distinct advantage over fossil fuels: longevity. A single reactor can run for years without refueling, and many plants keep a two-year stockpile on site. This reduces the risk of sudden price spikes or supply shocks. However, Grant Isaac of Cameco, one of the world’s biggest uranium producers, warns that “to break the dependence on Russia and other state-owned enterprises, coordinated Western responses are required.”

For now, the pledges are in place and the demand is rising — but unless governments and industry leaders can align on strategy, investment, and infrastructure, the nuclear renaissance could falter before it truly begins. The future of clean energy may well hinge not just on innovation, but on the often-overlooked complexities of the supply chain.

Conclusion:

The global shift toward nuclear energy, spurred by the explosive growth of artificial intelligence and rising geopolitical tensions, is ushering in what many are calling a "nuclear revival." From Silicon Valley tech giants to world leaders and financial institutions, there is a strong and unified call to triple nuclear power capacity by 2050. However, the road ahead is far from straightforward. Supply chain constraints—particularly in uranium enrichment—pose serious challenges that will require coordinated, long-term investments and clear policy direction from governments.

While the supply of natural uranium appears stable and diverse, the real pressure lies in processing and enrichment, especially given the dominant role Russia still plays. Legislative moves like the U.S. uranium import ban from Russia and retaliatory export blocks have only highlighted the vulnerabilities of Western energy infrastructure.

The silver lining is that nuclear power remains one of the more geopolitically stable energy sources due to its long fuel cycles and stockpiling capabilities. Still, tariffs, inconsistent policies, and hesitation from industry players to commit without reciprocal guarantees could stall progress at a critical time.

If the world hopes to meet growing AI-driven energy demand while reducing reliance on fossil fuels and geopolitically sensitive suppliers, nuclear must be part of the solution. But turning pledges into plants will require not just ambition, but also alignment across the entire nuclear fuel supply chain.