Trump's Nuclear Drive Fuels VanEck Uranium ETF 44% Rally As Microsoft, Google, Nvidia Chase AI-Powered Energy Boom
The nuclear energy sector is booming, driven by Trump's executive order to quadruple domestic nuclear production over 25 years. The VanEck Uranium and Nuclear ETF has surged 44% year-to-date, reaching $2.8 billion in assets. Major tech companies like Microsoft and Google are investing in nuclear energy, with Microsoft accelerating the Three Mile Island Unit 1 restart to 2027. The U.S. Energy Information Administration predicts record electricity demand due to AI and cryptocurrency, bolstering the case for nuclear power as a reliable energy source.
The nuclear energy sector has experienced unprecedented growth as policy shifts and artificial intelligence demands drive electricity consumption to record highs.
Executive Order Quadruples Nuclear Production
President Donald Trump signed an executive order targeting a fourfold increase in domestic nuclear power production over 25 years. The initiative has provided bipartisan support for nuclear energy after decades of stagnation.
“Trump has just pushed so hard on the adoption of this technology,” said Jan VanEck, CEO of VanEck, according to FOX Business. The administration’s backing has accelerated project timelines across the industry.
VanEck Uranium ETF Posts 44% Annual Gains
The VanEck Uranium and Nuclear ETF NLR has surged 44% year-to-date, raising $1 billion in assets this year alone. Total assets now sit at $2.8 billion, with the 18-year-old fund benefiting from diversified holdings beyond traditional uranium mining.
Top holdings include NuScale Power Corp. SMR, up 7.47% on Tuesday, PG&E Corp. PCG and Nano Nuclear Energy Inc. NNE. The fund’s diversification strategy captures utilities, miners, and emerging small modular reactor companies.
Microsoft Accelerates Three Mile Island Timeline
Constellation Energy Corp. CEG announced that Three Mile Island Unit 1 may restart in 2027, one year ahead of schedule, according to the Fox report. The acceleration follows a power purchase agreement with Microsoft Corp. MSFT to supply its energy-intensive data centers.
The U.S. Energy Information Administration projects AI and cryptocurrency will drive electricity demand to record levels through 2026, creating sustained demand for baseload nuclear power that renewable sources cannot match.
Industry Momentum Builds Across Sector
NextEra Energy Inc. NEE received Federal Energy Regulatory Commission clearance to restart Iowa’s Duane Arnold plant by late 2028. The company expects $100 million in 2025 investments alone for the restart.
Major tech companies, including Alphabet Inc. GOOG GOOGL and NVIDIA Corp. NVDA have invested in nuclear fusion startups, while Energy Fuels Inc. UUUU gained 100% year-to-date as the only fully licensed U.S. uranium producer.
Goldman Sachs data shows AI services like ChatGPT could increase data center energy consumption by 160%, supporting long-term nuclear demand fundamentals.
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