Nuclear Power Emerges as Key Player in Avoiding Looming US Natural Gas Crisis

Nuclear power could become an attractive solution to the looming natural gas crisis in the US, which is expected to be exacerbated by rising liquefied natural gas exports and artificial intelligence's increasing demand for electricity. According to a model developed by Matthew Smith of Chronometer Partners, the US could start drawing down its natural gas storage by mid-to-late 2028, with traditional inventory cushions largely depleted by around 2030.

Existing reactors already provide dependable, carbon-free baseload power, and once operating, production costs are generally well below those of building new gas-fired plants. Restarting retired reactors and deploying small modular reactors (SMRs) could help absorb AI's rapidly growing electricity demand before it translates into higher utility bills for households.

Big Tech companies such as Amazon, Microsoft, Meta Platforms, and Vistra have already begun sourcing power directly from nuclear facilities to reduce their dependence on the broader electric grid and limit the impact on residential ratepayers. However, a massive wall of local opposition stands in the way of new nuclear projects, with 53% of Americans opposing having a nuclear plant in their own community.

Expanding nuclear generation at existing reactor sites largely avoids this debate over whether nuclear belongs in a community, and residents have already accepted the technology. Surveys suggest between 70% to 86% of nearby residents support adding SMRs at existing nuclear sites. Investors should focus on companies expanding or restarting nuclear generation at these sites rather than betting on entirely new nuclear or data-center developments that may face years of local resistance.