The Nuclear Energy Boom: Where the Industry Really Stands Heading Into 4Q 2026

Between 2005 and 2025, U.S. electricity demand climbed by 10%. But in the 2025-2045 period, experts project a staggering 60% jump in demand. This surge creates a favorable environment for nuclear power, which generates reliable, clean energy without emitting greenhouse gases. However, the United States isn't fully prepared to take advantage of this opportunity.

In the U.S., only three nuclear reactors are in construction, while the majority of new construction is happening abroad. Of the 77 reactors under construction globally, 57 are being built outside the Americas. Asia leads the charge, with 57 reactors in various stages of development.

Investors seeking to capitalize on the U.S. nuclear power boom face challenges. Existing nuclear power companies like Constellation Energy (CEG) have benefited from increased electricity demand, but only to the extent of extending the life or boosting output of their existing reactors. Southern Company (SO) completed construction of two new reactors, positioning itself for long-term nuclear power generation.

However, the real growth is occurring outside the U.S. For instance, Cameco (CCJ), a nuclear fuel supplier, benefits from the global nuclear power expansion. It also owns 50% of Westinghouse, a key player in the nuclear power industry. Brookfield Renewable (BEP/NYSE: BEPC), another option, diversifies its clean energy portfolio, including hydroelectric, solar, wind, and storage. It also has a stake in Westinghouse, potentially benefiting from the expansion.

Brookfield offers attractive yields, with the partnership share class yielding 5% and the corporate share class at 4.9%. These yields may attract dividend investors more than Cameco's lower yield of 0.2%.

The future may lie in small modular reactors (SMRs), which are being developed by companies like Oklo and NuScale Power. Both companies have shown promise, with NuScale Power securing two potential customers for its SMR technology. However, both companies are still in early stages and face significant risks. Investors should approach these opportunities cautiously.