NEW YORK – With growing demand for electricity and clean energy, nuclear energy is attracting renewed attention.

The energy source has seen a resurgence as nations focus on reducing emissions to combat climate change. At the same time, the technology sector’s energy needs are growing in the form of data centers and strong advances in artificial intelligence.

These factors have led companies and governments to take a closer look at an energy source whose potential dangers made them unpopular just a few decades ago. According to McKinsey, the US is the fastest growing data center market. The company predicts demand will more than triple to 80 gigawatts by 2030.

Constellation Energy plans to reopen Three Mile Island in Pennsylvania under a deal with Microsoft. Oracle plans to use new technology in the form of small modular nuclear reactors to power its data centers, while Google buys nuclear energy from small modular reactors being developed by Kairos Power. Amazon bought a nuclear-powered data center in Pennsylvania earlier this year and is also investing in small nuclear reactors.

“The energy sector is quickly becoming a protagonist in the AI ​​story,” McKinsey analysts said in a report. “Access to electricity has become a critical factor in building new data centers.”

This demand, coupled with the goal of bringing the country’s electricity consumption to “net-zero” carbon emissions, means expectations for nuclear power’s contribution are skyrocketing. Nuclear power already supplies about 20% of total electricity generation in the United States, and the International Atomic Energy Agency projects that nuclear power generation capacity in North America could nearly triple by 2050.

Nuclear power is supported by the US government as a cleaner energy option to help reduce carbon emissions. The Vogtle Nuclear Power Plant in Georgia has commissioned two new reactors in recent years.

Forecasts of growing demand have made utilities with nuclear power plants targets for deals with big data companies.

Three Mile Island, Pennsylvania was the site of the worst commercial nuclear accident in U.S. history when the Unit 2 reactor suffered a partial meltdown and was shut down in 1979. The latest agreement between Microsoft and Constellation calls for the Unit 1 reactor to be restarted. which remained in operation until 2019.

“This deal recognizes the critical role of nuclear power in providing clean energy and supporting reliability,” Constellation Chief Financial Officer Daniel L. Eggers said in a call with analysts.

Several states still have moratoriums on nuclear energy development, but in the last decade there have been moves to lift them. Wisconsin, Kentucky, Montana and West Virginia are among the states that have restarted reactor construction. Other states, including New York, have some restrictions based on size and location.

The demand for nuclear energy is shining a brighter light on nuclear technology companies and uranium mining companies.

NuScale Power has seen shares rise more than five times this year, following a 40% rise in 2023. The company makes small modular reactors that have a smaller footprint than typical nuclear power plants and reactors. Wall Street expects its revenues to rise in the coming years.

Uranium prices are near a 15-year high. The price rise has helped boost shares of companies like Cameco and NexGen as uranium miners and their rivals face rising demand for the fuel.