Nuclear energy has become one of the most significant investment themes of 2026, fuelled primarily by the surging electricity demands of artificial intelligence.
U.S. electricity generation was essentially flat from 2005 to 2023, but hit a new all-time high in 2024 before reaching another record in 2025.
Artificial intelligence is widely credited as the catalyst behind this shift, with the industry’s rapid growth pushing electricity demand sharply higher for the first time in decades.
Data centers powering AI software require enormous amounts of electricity, not only to operate but to cool the graphics processing units executing AI computations.
Two companies specialising in small modular reactors, or SMRs, have emerged as particularly compelling plays on this structural energy shift.
Oklo (NYSE: OKLO) is considered by some analysts to be tailor-made for the AI industry, given its focus on what its management team calls “microreactors.”
Sam Altman, founder of OpenAI and ChatGPT, was an early investor in Oklo and served as Chair of the Board for many years.
Oklo recently signed a deal with Meta Platforms for a 1.2-gigawatt system in southern Ohio, underlining its strategy of selling directly to data center operators.
The company also expanded its capabilities through the acquisition of Atomic Alchemy, which added fuel recycling and medical-grade isotope sales to its portfolio.
Oklo’s management believes the full licensing and deployment timeline for its systems will shrink to just six to 12 months once the process is fully scaled.
NuScale Power (NYSE: SMR) takes a different approach, targeting grid-scale deployments rather than direct sales to individual data center operators.
Its most notable project is a deal with the Tennessee Valley Authority for a 6-gigawatt system designed to serve the eastern United States.
A power purchasing agreement for the Tennessee Valley Authority project is expected to be closed by the end of this year, which could serve as a significant catalyst for the stock.
NuScale’s systems are generally larger than Oklo’s, with commensurately longer lead times, but grid-scale SMRs address a different and equally urgent market need.
Utilities are also seeking low-carbon, reliable baseload power to avoid brownouts and rate hikes as electricity demand continues to climb.
Investors uncertain about which SMR company holds the stronger market position may find value in holding shares of both Oklo and NuScale for broader exposure.
Other diversified industrial conglomerates are also pursuing SMR technology, meaning the full competitive landscape has yet to take shape.
The convergence of AI-driven electricity demand and renewed interest in nuclear power positions both Oklo and NuScale as stocks worth watching throughout the year.
