Global Nuclear Capacity Poised for Tripling by 2050

Nuclear power is experiencing a resurgence globally due to increasing demand from data centers and artificial intelligence (AI) applications, requiring stable energy supplies. To meet this growing need, dozens of countries have pledged to triple global nuclear capacity by 2050.

Constellation Energy (CEG +1.39%) and Cameco Corporation (CCJ -0.01%) are two companies well-positioned to benefit from this trend. Constellation operates the largest nuclear fleet in the US, producing over 180 terawatt hours of annual nuclear generation. Its customers include tech giants like Microsoft and Meta Platforms, which require constant, uninterrupted power to meet their zero-emissions targets.

Constellation's recent 20-year power purchase agreement with Microsoft is a notable example of its ability to secure long-term contracts with major corporate buyers. The company also received important fuel license approval from the Nuclear Regulatory Commission for the Crane Clean Energy Center and a waiver from the Federal Energy Regulatory Commission (FERC) to transfer existing capacity interconnection rights.

Cameco, on the other hand, provides Western nations with dependable uranium supplies. With 433 million pounds of proven and probable uranium reserves, it stands out as a safe supplier in light of Russia's reduced role in the nuclear fuel market. Cameco also owns a mine in Kazakhstan and has a joint venture with Westinghouse Electric Company, which provides recurring revenue from maintenance, refueling, software, and replacement parts.

In its second quarter results, Constellation reported 22.9% revenue growth to $7.5 billion, while adjusted earnings per share (EPS) were up 33.5% year over year. Cameco's uranium segment saw a 15% increase in revenue, with adjusted EBITDA rising 48%. The company has also increased its forecast for uranium prices and revenue for 2026.