What Suppliers Need to Know About Nuclear Energy’s Comeback

After decades of decline, nuclear power is back in the spotlight. Rising global electricity demand, climate goals, and a need for dependable, carbon-free baseload power are driving renewed interest in this once-stagnant sector. Governments are pledging billions in support, and the private sector, particularly tech giants, is stepping in to bankroll nuclear restarts and new builds.

In 2023, the U.S. joined more than 20 other nations in pledging to triple global nuclear capacity by 2050. What’s different this time is the speed and scale of interest from commercial customers. Artificial intelligence, high-performance computing, and cloud services are fueling unprecedented demand for power, and nuclear offers a rare combination: stability, scale, and low emissions.

For energy suppliers, this “new nuclear” moment is more than an industry trend but an inflection point that could reshape generation portfolios, financing models, and customer relationships for decades.

Three Mile Island Restart Signals Nuclear is Back

The last time Three Mile Island made headlines, it was for the wrong reasons. In 1979, a partial meltdown at the Pennsylvania plant became the worst commercial nuclear accident in U.S. history. Public trust in nuclear energy plummeted, and momentum for new projects slowed to a crawl.

Fast forward to today, and Three Mile Island is set to restart in 2027 under a power purchase agreement (PPA) with Microsoft. This deal is a high-profile symbol of nuclear’s return.

Microsoft’s agreement mirrors a similar move by Meta, which secured a 1.1 gigawatt deal to save an Illinois nuclear plant from closure. These investments are notable for their structure: tech companies are effectively underwriting plant restarts in exchange for a guaranteed, long-term power supply. This is a sharp departure from traditional utility-customer relationships and a sign of how corporate energy procurement is evolving.

For suppliers, this new customer class—large, well-capitalized, and willing to sign decades-long contracts—represents both an opportunity and a challenge.

Data Centers Are Driving the Surge

Policy support from both Republican and Democratic administrations has set the stage for a nuclear revival. But the immediate spark is the rapid build-out of data centers.

According to Goldman Sachs, AI alone will drive a 165% increase in data center power demand over the next five years. Each hyperscale facility can require hundreds of megawatts of power, which is enough to power a small city. Nuclear’s ability to run 24/7 without carbon emissions makes it a natural fit.

What makes this moment unique is the alignment of long-term needs and long-term assets. Nuclear plants have lifespans measured in decades, and hyperscalers are willing to commit to similarly long contracts. This stability makes it easier to secure financing for costly plant restarts or new builds, where upfront costs can reach into the billions.

For suppliers, this could mean:

• A shift toward multi-decade offtake agreements rather than short-term supply contracts.
  
  
• Greater competition to serve high-demand, high-credit customers.
  
  
• Increased coordination with grid operators to ensure a large, steady supply commitment.

The Realities of Restarting Nuclear Plants

While the idea of bringing mothballed plants back online sounds simple, the reality is anything but. Of the roughly 90 operational reactors in the U.S., about half of those that have been decommissioned could potentially restart. The rest are too old or costly to rehabilitate.

Even for viable sites, suppliers and operators face a gauntlet of challenges:

1. Aged Infrastructure. Many plants have been idle for years. Restarting them means replacing or upgrading critical systems like turbines, control rooms, and containment structures to meet modern safety and performance standards.
   
   
2. Cybersecurity Risks. Nuclear plants decommissioned decades ago were not designed with today’s cyber threat landscape in mind. Cyberattacks on U.S. utilities rose 70% in 2023, making digital hardening essential. Suppliers may need to budget for extensive control system upgrades and continuous monitoring.
   
   
3. Supply Chain Constraints. Uranium rod manufacturing capacity was scaled down during nuclear’s decline. Rebuilding this supply chain requires specialized facilities and strict quality control, meaning long lead times for fuel.
   
   
4. Workforce Shortages. Many skilled operators retired during nuclear’s downturn, taking valuable institutional knowledge with them. Training replacements can take 5–7 years, and competition from other industries for engineering talent remains fierce.

These challenges add complexity, cost, and time to any restart project, factors suppliers need to weigh carefully when considering long-term nuclear procurement.

Why a Diverse Energy Mix Still Matters

Even if nuclear restarts proceed smoothly, it won’t be a silver bullet. Nuclear is ideal for baseload generation (steady, around-the-clock power), but modern grids also need flexibility to respond to demand spikes, weather events, and seasonal variations.

That’s where natural gas, solar, and wind remain critical. For example, Texas recently funded a 122 MW natural gas plant slated for 2027, showing that even in markets with strong renewables growth, other generation sources still attract investment.

For suppliers, the takeaway is clear: nuclear should be part of a balanced portfolio, not a replacement for other technologies. A resilient energy strategy blends long-term stability with short-term flexibility.

A New Model for Financing is Emerging

Data centers are giving nuclear something it rarely had before, and that’s a customer base willing to pay upfront for guaranteed power over multiple decades. This changes the financing model in several important ways:

• Reduced reliance on subsidies. Projects can move forward even without long-term government incentives.
  
  
• Improved bankability. Stable offtake contracts de-risk financing, attracting investors.
  
  
• Potential cross-sector adoption. If successful, this model could be replicated in industries like manufacturing, mining, or transportation hubs with large, predictable power needs.

However, this financing boom comes with risks. The push to meet AI-driven demand could tempt stakeholders to fast-track projects, potentially compromising safety or quality. For suppliers, that means due diligence is critical. Partner only with developers who can deliver on schedule without cutting corners.

The Bottom Line for Energy Suppliers

The nuclear renaissance is real, but it’s not without friction. For energy suppliers, it offers:

• Opportunities to secure long-term, high-value customers.
  
  
• Challenges in adapting to new procurement models and infrastructure realities.
  
  
• A role to play in shaping how nuclear integrates into a diversified energy mix.

Over the next decade, announcements will turn into projects, and projects into operational plants. The suppliers that succeed will be those who balance optimism with caution, leveraging nuclear’s strengths while planning for the inevitable bumps in the road.