U.S. pre-market nuclear power stocks surge! AI drives demand skyrocketing, Meta signs a 20-year nuclear power deal with Constellation Energy

Policy support and the signing of executive orders have once again driven demand expansion in the AI boom. Is nuclear energy about to experience a revival in the United States?

On Wednesday, according to media reports, Meta signed a 20-year nuclear power purchase agreement, starting in mid-2027, Meta will take on the entire output of approximately 1.1 gigawatts from the Clinton nuclear power plant in Illinois, enough to supply electricity to about 1 million households.

Behind this deal is the insane growth in electricity demand driven by artificial intelligence. As AI flourishes, nuclear energy is particularly favored because it can supply power around the clock and does not emit pollutants that contribute to global warming.

More ambitiously, Constellation is considering plans to build a second reactor at the Clinton nuclear power plant, which has received federal approval for the construction of a second unit. Constellation CEO Joe Dominguez stated:

"It makes sense for us to discuss the possibility of building next-generation assets with Meta and other companies. These discussions are currently progressing well."

Stimulated by this news, uranium-related stocks surged in pre-market trading, with Constellation Energy's stock price soaring by 15%, Uranium Energy rising by about 9%, Energy Fuels increasing by 9.9%, Nano Nuclear rising by 7.4%, and Nuscale Power gaining 7.7%.

The Nuclear Arms Race Among Tech Giants Heats Up

This transaction marks Meta's official entry into the nuclear energy sector.

According to Urvi Parekh, Meta's global energy head, this is the company's largest power deal to date. In December last year, Meta announced it was seeking proposals for up to 4 gigawatts of new reactors in the United States and has received about 50 proposals from various companies, including Constellation.

Other tech giants are also actively positioning themselves in the nuclear power market. Constellation announced in September last year that it would restart Three Mile Island (the site of the worst nuclear accident in U.S. history) and signed a 20-year power supply agreement with Microsoft. Google recently pledged to fund the development of three new nuclear power sites and had previously collaborated with small modular reactor developer Kairos Power. Amazon invested over $500 million in October to develop small modular reactors and purchased a data center park powered by the Susquehanna nuclear power plant in March 2024.

In March of this year, tech giants including Amazon, Google, and Meta signed a commitment led by the World Nuclear Association, calling for a doubling of global nuclear energy by 2050. This unprecedented collective action reveals the concerns of tech giants about the energy bottlenecks behind the AI computing power race.

"Policy Tailwinds" Boost Nuclear Energy Revival

According to reports, on May 23, President Trump signed four executive orders aimed at accelerating nuclear power construction in the United States. The most notable goal is to achieve a nuclear power capacity of 400 gigawatts by 2050, which would quadruple the current operational capacity of 100 gigawatts in the U.S.

In response, Wall Street giants are optimistic about the trend in uranium prices. Commodity strategist Amy Gower from Morgan Stanley and others believe that this trend strengthens the long-term demand outlook for uranium.

The time characteristics of nuclear power capacity development mean that the direct impact on uranium demand is limited, but it may reignite investor interest, particularly through demand for uranium ETFs. Since the end of 2023, this type of demand has been largely absent, and the new policies will support spot purchases.

The White House also called for expedited regulatory approvals for reactors, including small modular reactors. In the past, nuclear power projects have been plagued by high upfront costs and long construction times. The industry hopes that small modular reactors can provide a more cost-effective way to expand nuclear power capacity.

Constellation stated on Tuesday that it is considering applying for a new license from the Nuclear Regulatory Commission to potentially build small modular reactors at the Clinton nuclear power station. Dominguez stated that the company is negotiating with several clients for deals similar to the Meta contract, with agreements expected to be reached in the next 6 to 12 months.