Introduction
The nuclear energy sector is experiencing a renaissance, and recent executive orders signed by President Donald Trump on May 23, 2025, are set to accelerate this transformation. According to a new report from Goldman Sachs, these policy shifts are creating significant opportunities for uranium producers and small modular reactor (SMR) developers. With AI and data centers driving unprecedented energy demand, nuclear power is poised to play a critical role in powering the future. Here’s what you need to know about this exciting development and its implications for the energy and tech industries.
Trump’s Executive Orders: A Game-Changer for Nuclear
On May 23, 2025, President Trump signed a series of executive orders aimed at revitalizing the U.S. nuclear industry. Flanked by key figures like Secretary of Defense Pete Hegseth and Interior Secretary Doug Burgum, Trump declared nuclear power “a hot industry” that is “very safe and environmental.” These orders are designed to strip away decades of regulatory overreach and fast-track nuclear development. Key initiatives include:
- Accelerating Research and Deployment: The Department of Energy (DOE) will speed up reactor testing, advance R&D, and launch a two-year pilot program for reactor construction.
- Bypassing Regulatory Hurdles: The DOE and Department of Defense (DOD) will build reactors on federal land, bypassing the Nuclear Regulatory Commission (NRC) by leveraging their own regulatory authority.
- Reforming the NRC: The NRC is mandated to reform its culture and rule on new license applications within 18 months, a significant reduction from the current five-year average.
- Strengthening the Uranium Supply Chain: The orders call for expanded domestic uranium mining, enrichment, and recycling to bolster the U.S. nuclear industrial base.
These moves signal a strategic intent to restore U.S. leadership in nuclear energy, with a focus on powering next-generation technologies like AI and supporting national security.
Goldman Sachs’ Bullish Outlook
Goldman Sachs, in a note led by analyst Brian Lee, expressed optimism about the nuclear sector’s near- and medium-term prospects. The firm reiterated its Buy rating on Cameco Corporation, a leading uranium producer, and highlighted opportunities for companies developing SMRs. Key takeaways include:
- Uranium Demand Surge: Increased nuclear power generation will drive demand for physical uranium and fuel conversion services, benefiting companies like Cameco.
- Westinghouse Gains: Cameco’s 49% stake in Westinghouse could see immediate upside if its AP1000 reactor design is selected for new projects.
- SMR Potential: SMR developers stand to gain from potential loan funding for civilian and defense-related projects, with Goldman setting a $24 price target for SMR investments based on discounted cash flow and revenue-based valuations.
However, risks remain, including commodity price volatility, mining disruptions, and regulatory uncertainties for SMRs. Despite these challenges, the long-term outlook for nuclear is robust, driven by global energy demands and clean energy goals.
Why Nuclear Matters for AI and Data Centers
The rise of AI and data centers is a major catalyst for nuclear energy’s resurgence. Industry giants like Microsoft, Oracle, Google, and Amazon are investing in SMRs to meet their massive energy needs. As Michael Kratsios, director of the White House Office of Science and Technology Policy, noted, “Nuclear energy is necessary to power the next generation technologies that secure our global industrial, digital, and economic dominance.”
Oklo, a Zero Hedge favorite, exemplifies this trend. The company is developing a 75-MW SMR design and has secured 14 GW in nonbinding agreements with data centers and industrial operators. Oklo’s stock has surged 10x since October 2024, reflecting investor enthusiasm for nuclear’s role in the AI revolution.
Global Nuclear Renaissance
The U.S. is not alone in embracing nuclear power. The International Atomic Energy Agency projects that global nuclear capacity could more than double by 2050. Highlights from around the world include:
- China: Leading with 30 reactors under construction, including the massive Lianjiang plant.
- India: Building 10 new 700-MW heavy water reactors in “fleet mode.”
- Japan: Restarting reactors and developing next-generation technologies post-Fukushima.
- Europe: France, the UK, and Nordic countries are extending plant lifespans and investing in SMRs.
With 63 reactors under construction globally as of late 2024, the nuclear renaissance is gaining momentum, particularly in emerging economies.
Investment Opportunities
For investors, the nuclear sector offers compelling opportunities. Goldman Sachs sets a $65 price target for Cameco’s U.S. listing and $24 for SMR investments, reflecting strong growth potential. Companies like Oklo, eligible for the military’s Advanced Nuclear Power for Installations program, are also worth watching. However, investors should be mindful of risks such as execution challenges, funding needs, and regulatory delays.
Conclusion
President Trump’s executive orders mark a pivotal moment for the U.S. nuclear industry, aligning with global trends and the growing energy demands of AI and data centers. As Goldman Sachs notes, the prospects for uranium producers and SMR developers “bode well,” signaling a bright future for nuclear energy. For the New Power and Data community, this is a trend to watch closely, as nuclear power emerges as a cornerstone of the clean energy transition and technological innovation.
