The US electric grid faces increasing strain from surging demand driven by Artificial Intelligence (AI) and cloud computing data centers, industrial automation, and widespread electrification of transportation and other sectors. Nuclear energy is a reliable solution, advises Nancy Tengler, CIO of Laffer Tengler Investments.
Since 2017, over 135 gigawatts (GW) of capacity (62% coal, 24% natural gas) have retired, with an additional 80 GW planned by 2029. While ~225 GW of new capacity is under development (64% solar, 18% wind, 14% natural gas), the heavy reliance on intermittent renewables and non-utility developers raises concerns about meeting future demand spikes, necessitating robust baseload solutions.
(Editor’s Note: Nancy is speaking at the 2025 MoneyShow Masters Symposium Sarasota, scheduled for Dec. 1-3. Click HERE to register.)
Nuclear power, currently providing ~8% of US capacity (103 GW), is reemerging as a low-carbon, stable baseload option critical for grid reliability and energy independence. With only 2 GW added since 2017, momentum in nuclear generation is growing with >12 GW of proposed additions and plant restarts (e.g., Palisades, Three Mile Island).
Innovations like small modular reactors (SMRs), passive cooling, and accident-tolerant fuels promise safer, cost-effective builds with shorter lead times. Global trends – including calls for plant restarts in Japan and Europe, along with ongoing nuclear expansion in China – echo US bipartisan support through policies like the 2024 ADVANCE Act and 2025 Executive Orders for NRC reforms, uranium enrichment, and nuclear education.
The nuclear renaissance offers a compelling opportunity for thematic investors, combining established energy companies with innovative startups in a market poised for growth. As energy demand accelerates and renewables require consistent partners to reduce fossil fuel reliance and meet emissions goals, nuclear’s high-output reliability positions it for significant returns.
Despite long-cycle development, supportive policies and technological advancements enhance its attractiveness for patient investors seeking to capitalize on the evolving energy landscape.
