US Backs Nuclear Energy with $80bn Cameco, Brookfield Deal
Strategic partnership aims to fast-track Westinghouse reactors, citing energy security and soaring power demand from AI.
The U.S. government is throwing its weight behind a major revival of nuclear energy, entering a strategic partnership with uranium producer Cameco and asset manager Brookfield to accelerate the deployment of new Westinghouse reactors across the country.
The landmark agreement, announced Tuesday, earmarks at least $80 billion for new nuclear power projects. The move is a significant endorsement of nuclear power's role in meeting national security goals and long-term clean energy demand, which is being supercharged by the voracious energy needs of artificial intelligence data centers.
This partnership is seen by market participants as a critical de-risking event for the capital-intensive nuclear sector. By signaling strong federal support, the initiative is expected to streamline permitting, facilitate financing, and bolster domestic supply chains, providing a clear path forward for an industry that has faced decades of stagnation.
"This is a transformational partnership that will create a platform for the private sector to partner with the government to deliver the critical energy the U.S. needs to meet our collective energy security and climate goals," said Tim Gitzel, President and CEO of Cameco, in a statement.
The deal builds on a previous major investment in the sector. In 2022, Cameco and Brookfield jointly acquired Westinghouse Electric Company, the designer of the reactor technology at the center of the new initiative, in an $8 billion deal that positioned the firms for a nuclear renaissance.
Shares of Cameco (NYSE: CCJ), a key player in the uranium market, have already seen strong momentum this year, reflecting growing investor optimism. The company, with a market capitalization of over $38 billion, has a consensus "Buy" rating from analysts, who see it as a primary beneficiary of the renewed global push toward nuclear power. The stock has traded as high as $97.79 in the past year, well above its low of $35.00, underscoring the powerful tailwinds driving the industry.
The government's backing comes as the U.S. grapples with a looming power crunch. Projections for electricity demand are being continuously revised upwards, largely driven by the proliferation of AI and the electrification of transport. Nuclear power, with its ability to provide reliable, 24/7 carbon-free baseload energy, is increasingly viewed as an indispensable part of the solution.
Analysts have noted that the sector may be entering a "golden era for nuclear investments." This federal initiative is expected to catalyze substantial private funding and streamline the regulatory hurdles that have historically slowed reactor development. The partnership aims not only to build new large-scale reactors but also to support next-generation advanced nuclear technologies, such as small modular reactors (SMRs) and Westinghouse’s eVinci micro-reactor.
For Cameco, the deal solidifies its strategic pivot from a pure-play uranium miner to a broader participant in the nuclear fuel cycle. For Brookfield, it represents a significant expansion of its energy transition portfolio, leveraging its expertise in managing large-scale infrastructure assets. According to the official release, the collaboration is designed to deliver long-term value and enhance energy security for decades to come, marking a pivotal moment for the future of American energy production.