Nuclear energy is undergoing a worldwide renaissance as nations confront the twin imperatives of decarbonisation and dependable baseload generation. This is the conclusion of new analysis from NEi parent company Global Data. The report notes that the global nuclear resurgence follows decades of contraction prompted by high-profile accidents, public unease, and steep capital costs. However, innovations in reactor architecture, modular construction, and passive safety systems, together with escalating climate commitments and heightened concerns about energy security, have renewed strategic and investor interest in the nuclear industry.
Nevertheless, widespread deployment remains constrained by enduring public safety anxieties, legacy regulatory burdens, and the substantial capital expenditures associated with conventional large-scale reactors. The report states that the pace and extent of nuclear expansion will hinge on policy choices, financing mechanisms, and societal acceptance.
In recent years, several states have markedly expanded their nuclear-power programmes. China stands out with dozens of reactors under construction. India likewise is accelerating its nuclear agenda, prioritising domestically-designed reactors and fast-breeder technology to diversify and secure its energy portfolio. Meanwhile France has abandoned earlier plans for substantial decommissioning and instead is investing in life-extension measures and the construction of new EPR2 units.
In the US the commissioning of Vogtle units 3 and 4, the first new commercial reactors brought online in the US in over 30 years, signals a measured but renewed commitment to nuclear generation. In the Middle East, nuclear power is emerging as a strategic tool for fuel diversification and industrialisation: the UAE’s Barakah plant is now fully operational, Saudi Arabia has articulated plans for inaugural reactors, and Egypt’s El Dabaa project is progressing.
These developments, says the report, underscore a broader trend: despite enduring concerns about cost, safety, and waste management, nuclear energy is experiencing renewed interest.
Financial incentives and investment growth
Reflecting underlying macro-trends such as the electrification of transport and industry, investment in nuclear power has grown substantially, reaching $65bn in 2023, nearly double the level from a decade earlier. This includes $42bn allocated for new nuclear plant construction and $25bn annually for reactor refurbishments.
While the nuclear sector has traditionally struggled with upfront capital costs, new financial mechanisms are making projects more attractive to investors. Green bonds and government-backed loans have played a crucial role, with EDF raising $3.2bn in green bonds specifically for nuclear investments. Power purchase agreements (PPAs) are also gaining traction, as large electricity consumers, such as data centres and heavy industries, secure long-term contracts to ensure stable pricing.
Additionally, state-owned enterprises and loan guarantees are driving nuclear expansion, with governments in France, China, and Russia financing projects through public-sector funding and credit guarantees.
To meet growing energy needs and decarbonisation goals, tech firms in particular are turning to nuclear energy, with 24 GW of new US data centre projects in 2024 alone considering SMRs or revived nuclear plants. Countries like India, Japan, and Sweden are also exploring nuclear-powered data centres, marking a global shift where private-sector demand is driving nuclear investment.
Governments worldwide are also reinforcing nuclear energy policies through financial incentives, regulatory support, and direct investments. The US Inflation Reduction Act (IRA) introduced tax credits and financial mechanisms to improve nuclear competitiveness, while Japan’s Green Transformation (GX) initiative revised regulations to allow reactors to operate beyond 60 years, ensuring long-term investment certainty.
The US Department of Energy (DOE) has demonstrated strong support for the nuclear industry through programmes such as the Advanced Reactor Demonstration Program (ARDP), which allocates billions of dollars for the development and commercialisation of next-generation nuclear technologies.
Federal incentives, such as the Production Tax Credit (PTC) and Investment Tax Credit (ITC) for clean energy projects, also bolster nuclear power by improving the economic viability of new plants.
In Europe, several countries are supporting a continued nuclear contribution having granted lifetime extensions to aging nuclear reactors. These include Belgium (2.2 GW), Hungary (2.0 GW), the Czech Republic (2.0 GW), Finland
(1.1 GW), Spain (1.1 GW), Romania (0.7 GW), and the Netherlands (0.5 GW). The European Union’s classification of nuclear power as a “green investment” under its Taxonomy has further improved investor confidence. Additionally, nuclear power’s integration into long-term power contracts, such as government-backed power purchase agreements (PPAs), has made it more financially viable, ensuring stable revenue streams for plant operators.
Several key policies have been implemented to support nuclear power in France. The Energy and Climate Law of 2019 originally set a target to reduce nuclear’s share of electricity generation to 50% by 2035, though this timeline may be revised in light of the new expansion plans. Under the France 2030 Investment Plan, EUR1bn ($1.16bn) has been allocated for SMRs and advanced nuclear research and development.
The Indian government is also amending existing laws to open the nuclear sector to private and foreign entities. Historically, the Atomic Energy Act of 1962 granted the central government a monopoly over nuclear energy production. Proposed amendments aim to facilitate private sector participation and attract foreign direct investment (FDI), thereby infusing the sector with necessary capital and technological expertise.
Nuclear growth forecast
Nuclear power accounted for approximately 9% of global electricity generation at the end of 2024, with around 410 reactors in operation worldwide, providing a total capacity of about 395 GW. An additional 63 reactors are under construction, highlighting a strong expansion trend. Over the past two decades, nuclear capacity has remained relatively stable, as some countries expanded their fleets while others phased out nuclear energy due to political or environmental considerations.
Global nuclear capacity has experienced a mix of steady growth, temporary setbacks, and policy-driven expansions from 2015 to 2024. The total installed nuclear power capacity rose from 381.3 GW in 2015 to 395.4 GW in 2024.
The early years of this timeline saw moderate growth in nuclear power, particularly in countries with long-term commitments to nuclear energy. In China, which led the global nuclear expansion, installed capacity increased significantly as the country commissioned multiple new reactors. Between 2015 and 2019, China brought several large-scale PWRs online, including its indigenous Hualong One reactors. As a result, China’s nuclear power generation rose from 161.2 TWh in 2015 to 330.1 TWh in 2019, contributing significantly to the overall global increase. On the other hand, certain nations experienced stagnation or even declines in nuclear generation during this period.
Germany continued its nuclear phase-out, shutting down reactors as part of its Energiewende policy, leading to a gradual reduction in capacity. Japan, still recovering from the Fukushima-Daiichi disaster in 2011, faced regulatory challenges that slowed the restart of its nuclear fleet. By 2019, Japan’s nuclear generation had only marginally increased compared to 2015 levels despite efforts to revive reactors under stricter safety regulations.
A significant global event impacting nuclear power generation was the COVID-19 pandemic in 2020. The decline in electricity demand, combined with operational disruptions and maintenance delays, led to a temporary dip in total nuclear generation, which fell from 2,649.6 TWh in 2019 to 2,560.5 TWh in 2020. Countries such as the US, France, and South Korea witnessed lower nuclear output due to reduced grid demand and delayed reactor refuelling schedules. However, China continued its upward trajectory, with new reactor additions partially offsetting the overall global decline. Post-2020, the nuclear sector witnessed renewed momentum, driven by energy security concerns and decarbonisation goals. The Russia-Ukraine conflict in 2022 significantly altered global energy dynamics, pushing many European nations to reconsider their stance on nuclear energy. France reaffirmed its commitment to expanding nuclear capacity, announcing plans to construct new EPR (European Pressurised Reactor) units. The UK, facing energy supply challenges, accelerated its investment in small modular reactors (SMRs), while the US provided financial support for extending the lifespans of existing nuclear plants.
Russia, despite geopolitical sanctions, continued its international nuclear partnerships, supplying reactor technology and nuclear fuel to countries like Turkey, India, and Bangladesh. Meanwhile, South Korea, after years of policy uncertainty, recommitted to nuclear energy under a revised energy strategy, reversing earlier plans to scale down its nuclear fleet.
While capacity additions continued, growth remained moderate due to plant retirements in some regions and delays in new reactor deployments. However, momentum is expected to accelerate in the coming years as multiple countries expand their nuclear programs to strengthen energy security and reduce reliance on fossil fuels. By 2035, global nuclear capacity is projected to reach 494.1 GW, generating approximately 3,410.3 TWh of electricity. This increase will be driven by large-scale reactor expansions in China, India, and Russia, alongside renewed investments in nuclear power from European nations such as France and the UK. Additionally, the deployment of small modular reactors (SMRs) in Canada, the US, and Japan is expected to contribute to capacity growth, providing flexible and scalable nuclear solutions. The global push for decarbonisation, rising electricity demand, and energy diversification strategies will further support this upward trend in nuclear power development.
