The AI Energy Surge: How Nuclear Power is Fueling the Future

VanEck Uranium+Nuclear Energy ETF US92189F6016

The insatiable energy demands of artificial intelligence are fundamentally reshaping the investment landscape for uranium and nuclear power. As technology behemoths commit billions to secure reliable electricity, funds like the VanEck Uranium+Nuclear Energy ETF are emerging as pivotal vehicles for exposure. This shift raises a critical question: can the nuclear industry scale rapidly enough to support the explosive growth of data centers?

Momentum is building from both public and private sectors. A significant catalyst came recently from the U.S. Department of Energy, which awarded contracts worth $2.7 billion for uranium enrichment. A substantial portion of this, $900 million, was allocated to Centrus Energy to dramatically expand its production of high-assay low-enriched uranium (HALEU).

The ETF’s portfolio is constructed to capture value across the entire nuclear supply chain, from raw material extraction to power generation. Its major holdings reflect this strategy:
* Cameco Corp: 9.38 %
* Denison Mines: 5.80 %
* Uranium Energy Corp: 5.36 %
* Constellation Energy: 5.23 %

This blend of established utility operators and innovative technology providers aims to offer a more balanced risk profile compared to funds focused solely on mining equities.

Hyperscalers Lock Down Power Capacity

A defining trend for the sector began in January 2026, when Meta signaled a massive commitment to nuclear energy. To power its expanding data center operations, the company secured access to up to 6.6 gigawatts of capacity through long-term agreements. These 20-year contracts with industry leaders like Vistra and developer Oklo included strategic upfront payments, highlighting the urgency of the power crunch.

This move by "hyperscaler" companies to directly secure baseload power provides structural tailwinds for the ETF. The strategy of locking in exclusive, carbon-free electricity is becoming a new norm, directly benefiting the fund's underlying holdings.

Strong Fundamentals and a Clear Path Forward

Market fundamentals remain robust, with the uranium price holding firm at approximately $99.25 per pound as of late January. This strength is underpinned by a U.S. ban on imports of Russian uranium and new reactor applications from major utility companies such as Duke Energy.

Investors are now closely monitoring upcoming quarterly results from large utilities and the regulatory progress for small modular reactor (SMR) certifications. With projections indicating data center electricity demand could surge by 165% by 2030, zero-carbon nuclear power is poised to be a cornerstone of AI infrastructure development. The ETF's total expense ratio of 0.60% is currently being supported by a fee waiver that remains in effect until at least May 1, 2026.

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