Investment flows into nuclear power are accelerating as governments, utilities, and private investors reassess the technology’s role in meeting decarbonisation, reliability, and energy-security objectives, according to a new report on Nuclear Power: Strategic Intelligence by GlobalData.
The 68-page report says new investment in nuclear power recorded $27.9bn in 2024 and is estimated to reach $41.8bn by 2030 at a compound annual growth rate of 8% between 2025 and 2030. Technological innovations such as SMRs and advanced reactors are catalysing a more robust pipeline of projects worldwide from large gigawatt-class plants to modular deployments. This signals a maturation of markets and financing structures that support a sustained expansion of nuclear capacity.
Renewed public-sector commitment in the form of direct financing, loan guarantees, contract-for-difference schemes, and streamlined permitting has reduced the perceived sovereign and offtake risks that previously deterred large-scale projects, according to the report. At the same time, private capital is becoming more willing to underwrite nuclear-related ventures, drawn by stable long-term revenue profiles, rising carbon-pricing signals, and portfolio diversification benefits.
Venture financing is gathering traction in the nuclear power sector, as shown by the increasing number of deals and the amounts being raised. Companies focusing on next-generation nuclear technologies, such as fusion and advanced small modular reactors, are attracting considerable venture capital. This trend reflects a broader shift towards innovative approaches in the nuclear industry.
GlobalData says the nuclear sector’s reliance on venture financing is part of a larger financial landscape where debt offerings remain dominant, but equity and venture capital are crucial for fostering innovation and supporting new technologies. “This dual approach is essential for addressing the challenges of construction risks, cost overruns, and project delays that plague the industry.”
Technological innovation is unlocking new investment pathways: small modular reactors (SMRs) and advanced reactor concepts promise lower upfront capital intensity, shorter construction times, and enhanced safety features, making nuclear projects more bankable and attractive to a broader investor base. SMR deployment is anticipated to expand in the coming years as nations diversify their energy portfolios, decarbonise electricity supplies, and bolster energy security.
Currently, 281 MW of SMR capacity is active in Russia and China, whereas other countries, such as the US and Argentina, have small modular reactors that are under an advanced stage of construction. Several countries have engaged in the development of SMRs as a strategic move to support national energy security and reduce dependence on fossil fuels. Many regions, including the US, China, Russia, Canada, South Korea, the UK, and India, are advancing SMR development through government support, private investment, and R&D. China and Russia have already connected operational SMRs to their grids, while other countries are in various stages of construction, licensing, and design.
GlobalData believes the outlook for SMRs appears to be promising. SMRs represent a disruptive advancement in nuclear technology by fundamentally altering the economics, deployment modalities, and safety paradigms of nuclear power. The report says the next decade is set to witness a sharp increase in SMR deployment, with more than 100 planned reactors in various stages of development. These projects span multiple countries and reactor types. “The projected commissioning timeline suggests a gradual but accelerating growth in SMR adoption.”
The report says artificial intelligence (AI) is also transforming the nuclear industry by improving safety, efficiency, and security through applications such as predictive maintenance, optimised reactor design, and advanced monitoring. Predictive maintenance is one of the most promising applications of AI in the nuclear sector. Machine learning models can predict equipment and system failures by analysing historical data and identifying patterns. This allows operators to schedule maintenance tasks more efficiently, avoiding unexpected failures and minimising operational interruptions.
AI algorithms can adjust energy generation levels based on real-time data, such as system demand, weather conditions, equipment performance, and more. This dynamic adjustment helps maintain a stable power supply and maximizes energy production. Automation is another area of interest for AI implementation. Robots and automated systems can perform routine tasks such as inspections and maintenance. This not only improves efficiency but also reduces the risk of human error and staff exposure to hazardous environments.
The rapid expansion of AI, cloud computing, and digital services is significantly increasing data centre electricity demand, making nuclear energy, particularly SMRs, an attractive power source. To meet growing energy needs and decarbonisation goals, tech firms are turning to nuclear energy, with 24 GWe of new US data centre projects in 2024 alone considering SMRs or revived nuclear plants.
According to GlobalData, the global nuclear power sector is undergoing a pronounced transformation as nations reconcile imperatives of energy security, decarbonization commitments, and rapid technological progress. Nevertheless, widespread deployment remains constrained by enduring public safety anxieties, legacy regulatory burdens, and the substantial capital expenditures associated with conventional large-scale reactors. Emerging reactor designs and modular construction approaches promise to mitigate some cost and safety objections, but the pace and extent of nuclear expansion will hinge on policy choices, financing mechanisms, and societal acceptance.
