Nuclear Renaissance Gains Momentum

AI data centers and the electrification of different industries are creating a surge in power demand that outpaces global supply, and this is prompting companies, policymakers and investors to take another look at nuclear power.

Morgan Stanley Research estimates 586 gigawatts (GW) in new global nuclear capacity by 2050, or 53% more than its initial forecast last year, when analysts reported that a “renaissance” was coming for the industry. They are now estimating that potential investments in the nuclear value chain through 2050 will increase to $2.2 trillion, up from the $1.5 trillion initially forecast.

That stronger momentum is likely to benefit several sectors, including uranium mining, nuclear power generation, and equipment and plants. 

“The nuclear renaissance has been building for some time already – with 22 nations pledging to triple nuclear capacity by 2050 at the COP28 summit in December 2023, plant life extensions in Europe, a strong pipeline in China, and Japan continuing to restart capacity,” says Tim Chan, Morgan Stanley’s Head of Asia Sustainability Research. “The dual imperatives of decarbonization and energy security are making the nuclear renaissance a truly global investment theme.”

While natural gas is currently the main alternative to meet AI’s energy demand, technology companies are willing to pay a premium to transition to nuclear energy.

“We believe natural gas will be the primary near-term solution for powering AI data centers due to its speed to market, reliability and flexibility, while nuclear power represents a longer-term clean energy alternative that is likely to gradually increase in importance,” says Stephen Byrd, Morgan Stanley's Global Head of Sustainability Research. “Gas and nuclear are likely to play complementary roles.”

Better Financing for Nuclear 

Investors are showing relative openness to nuclear power, especially when looking at exclusion policies. As of December 2024, only 2.3% of total assets under management adopted a policy to exclude investments in nuclear power, according to the Morgan Stanley Institute for Sustainable Investing. That means nuclear power assets are now better accepted than alcohol (2.9% exclusions), military contracting (4.7%) and gambling (5.1%). 

Development banks, including the World Bank and Asian Development bank, have announced that they are eliminating their decades-long rules that prohibited financing of nuclear power projects. 

Credit markets are also becoming more favorable to nuclear through green bonds. Last year, the European Union, China and Japan included nuclear power in their energy lending policies to facilitate financing for the nuclear supply chain. Since then, companies have successfully raised billions of dollars to fund nuclear energy projects, according to the International Energy Agency. 

China Poised to Take the Lead

Total global nuclear capacity was at 398 GW in July 2025, according to the World Nuclear Association. That capacity could more than double to 860 GW by 2050, led by Asia, according to Morgan Stanley Research. 

China currently has the most nuclear power plants under construction, planned or proposed. Their aggressive push to supply data centers solely with green power should turn the country into the global leader in nuclear capacity by 2030.

The U.S. is currently the world's largest producer of nuclear power. However, there has been no new large-scale project in the country in the last 15 years. President Donald Trump signed in May executive orders aiming to quadruple nuclear capacity in the country by 2050. 

In Europe, nuclear energy growth has been largely coming from countries in the central and Eastern parts of the continent, while Western nations, such as France, Spain and Sweden, only expect to have modest expansion.

An Opportunity for Korea and Japan

Although China and Russia are among the world’s largest producers of nuclear energy, the two countries could have a smaller share of the global market due to trade and security policies. For example, Europe is trying to reduce its reliance on Russian enriched uranium, while the U.S. Congress has already approved a ban on it. 

“We anticipate that demand for Chinese and Russian nuclear technology may be more selective in the future,” Chan says. 

That creates an opportunity for Korea, whose industrial companies have a successful record of exporting nuclear equipment. In Morgan Stanley’s bull case analysis, Korea could win as much as 39% of the global nuclear total addressable market. 

Japan is also well positioned to tap the global market after the government released this year a new strategic energy plan calling for proactive use of nuclear power. 

“For now, we believe Japan will focus on a domestic nuclear restart and on exports of nuclear components only,” Chan says. “But similar to Korea, Japan has the domestic scale that supports potential full plant exports in future,” Chan says.

For deeper insights and analysis, ask your Morgan Stanley Representative or Financial Advisor for the full report, “The Nuclear Renaissance Is Here – What’s Next?” (Aug. 12, 2025).