POLICY & MARKETS | NUCLEAR GROWTH FORECAST


Plotting nuclear growth drivers


A new report from NEI parent company Global Data


highlights the renewed prospects for the global nuclear industry and reveals key drivers behind the sector’s renewal.


NUCLEAR ENERGY IS UNDERGOING A worldwide renaissance as nations confront the twin imperatives of decarbonisation and dependable baseload generation. This is the conclusion of new analysis from NEI parent company Global Data. The report notes that the global nuclear resurgence follows decades of contraction prompted by high-profile accidents, public unease, and steep capital costs. However, innovations in reactor architecture, modular construction, and passive safety systems, together with escalating climate commitments and heightened concerns about energy security, have renewed strategic and investor interest in the nuclear industry. Nevertheless, widespread deployment remains constrained by enduring public safety anxieties, legacy regulatory burdens, and the substantial capital expenditures associated with conventional large-scale reactors. The report states that the pace and extent of nuclear expansion will hinge on policy choices, financing mechanisms, and societal acceptance. In recent years, several states have markedly expanded their nuclear-power programmes. China stands out with dozens of reactors under construction. India likewise is accelerating its nuclear agenda, prioritising domestically- designed reactors and fast-breeder technology to diversify and secure its energy portfolio. Meanwhile France has abandoned earlier plans for substantial decommissioning and instead is investing in life-extension measures and the construction of new EPR2 units. In the US the commissioning of Vogtle units 3 and 4, the


first new commercial reactors brought online in the US in over 30 years, signals a measured but renewed commitment to nuclear generation. In the Middle East, nuclear power is emerging as a strategic tool for fuel diversification and industrialisation: the UAE’s Barakah plant is now fully


operational, Saudi Arabia has articulated plans for inaugural reactors, and Egypt’s El Dabaa project is progressing. These developments, says the report, underscore a


broader trend: despite enduring concerns about cost, safety, and waste management, nuclear energy is experiencing renewed interest.


Financial incentives and investment growth Reflecting underlying macro-trends such as the electrification of transport and industry, investment in nuclear power has grown substantially, reaching $65bn in 2023, nearly double the level from a decade earlier. This includes $42bn allocated for new nuclear plant construction and $25bn annually for reactor refurbishments. While the nuclear sector has traditionally struggled with


upfront capital costs, new financial mechanisms are making projects more attractive to investors. Green bonds and government-backed loans have played a crucial role, with EDF raising $3.2bn in green bonds specifically for nuclear investments. Power purchase agreements (PPAs) are also gaining traction, as large electricity consumers, such as data centres and heavy industries, secure long-term contracts to ensure stable pricing. Additionally, state-owned enterprises and loan


guarantees are driving nuclear expansion, with governments in France, China, and Russia financing projects through public-sector funding and credit guarantees. To meet growing energy needs and decarbonisation


goals, tech firms in particular are turning to nuclear energy, with 24 GW of new US data centre projects in 2024 alone considering SMRs or revived nuclear plants. Countries like India, Japan, and Sweden are also exploring nuclear- powered data centres, marking a global shift where private- sector demand is driving nuclear investment.


Right:


In the Middle East, nuclear power is emerging as a strategic tool for fuel diversification and industrialisation


32 | December 2025 | www.neimagazine.com


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