Nuclear Stocks Surge on $80B US-Private Sector Reactor Deal
Cameco and Brookfield partner with the U.S. government to deploy a new fleet of Westinghouse reactors, aiming to power the nation's growing AI infrastructure.
Shares of nuclear energy companies surged Tuesday after Cameco and Brookfield Asset Management announced a landmark partnership with the U.S. government to deploy at least $80 billion worth of new nuclear reactors across the United States.
The deal, which aims to reinvigorate the nation's nuclear industrial base, sparked a broad rally across the sector. Shares of uranium giant Cameco (CCJ) rocketed up 22.2%, while small modular reactor developer NuScale Power (SMR) jumped 11.8%. Canadian uranium firm NexGen Energy (NXE) also gained 11.4% in afternoon trading.
The partnership is designed to leverage Westinghouse Electric Company's reactor technology to provide reliable, carbon-free power for the country's rapidly expanding data center and artificial intelligence compute capacity. According to the official announcement, the collaboration marks a pivotal step in cementing the U.S. as a global leader in nuclear energy.
"This transformational partnership is a direct response to the growing consensus that nuclear power is essential for protecting our energy security, achieving our climate goals, and powering our modern economy," the joint statement detailed. The agreement will utilize Westinghouse's established AP1000 pressurized water reactor and its forthcoming AP300 Small Modular Reactor (SMR).
The deal structure involves significant private and public alignment. The U.S. government will facilitate financing and permitting processes. In return, it will hold a 20% participation interest in cash distributions from Westinghouse once certain financial thresholds are met, including the construction of the $80 billion in new reactors.
This initiative comes as Western governments increasingly turn to nuclear power to meet ambitious climate targets and ensure energy independence. The immense electricity demand projected for AI data centers has added a powerful new catalyst to the nuclear thesis, with industry leaders highlighting the need for a stable, 24/7 power source that renewable energy alone cannot provide.
Investor enthusiasm reflects a growing belief that the nuclear sector is on the cusp of a renaissance after years of stagnation following the 2011 Fukushima disaster in Japan. Analysts suggest the scale of the investment could fundamentally reshape the domestic energy landscape, creating a durable demand pipeline for uranium fuel, reactor components, and specialized engineering services.
While the announcement provides a significant strategic direction, the partnership still faces the long road of regulatory approval, public consultation, and the complex logistics of nuclear construction. However, the explicit backing of the U.S. government, combined with the financial muscle of Brookfield and the operational expertise of Cameco and Westinghouse, signals a formidable commitment to overcoming these historical hurdles.