Data centers are expected to consume more electricity in the coming years thanks to the growth of artificial intelligence and cryptocurrency mining – and nuclear power and uranium appear to be a good way for investors to be exposed to this increase in electricity demand.
Clearly, data centers and AI need “constant baseline power”, while many information technology (IT) companies in the sector have also committed to achieving net zero carbon emissions. energy as part of their environmental, social and governance policies, said Jonathan Hinze, president of UxC, a nuclear fuel market information and analysis company. “That’s why nuclear energy is ideal for them. »
Uranium is expected to benefit, as an increase in nuclear power would lead to higher demand for nuclear fuel. Restarting nuclear reactors, such as Constellation Energy Corp.’s Three Mile Island Unit 1, and building new reactors would result in additional demand for uranium, Hinze said.
