The AI infrastructure boom is igniting a nationwide fight over energy policy. Surging power demand from hyperscale data centers, EV adoption, and electrification trends has collided with years of underinvestment in baseload capacity, triggering public backlash in high-demand corridors like the Mid-Atlantic, Northeast, and Arizona. In Tucson, city officials recently killed a $3.6 billion Amazon Web Services data center plan over water and energy concerns, joining 142 grassroots groups across 28 states that have blocked or delayed over $60 billion in similar projects.
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Critics argue that past policy choices—retiring reliable fossil fuel plants while over-relying on intermittent renewables—left the U.S. ill-prepared for the AI era’s power needs. The pivot now is clear: momentum is building for nuclear as the clean, scalable baseload solution capable of supporting the decade-long AI buildout without crushing consumers with soaring electricity bills. Energy Secretary Chris Wright has likened the AI arms race with China to “the next Manhattan Project,” urging the securing stable power at scale.
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The nuclear push isn’t limited to Earth. NASA just confirmed plans to build a small nuclear reactor on the Moon by the late 2030s to power lunar bases and research stations. With domestic utilities, private capital, and federal agencies now converging on nuclear, the sector is poised for a structural demand surge not seen since the mid-20th century.
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The expected demand for nuclear drove massive gains in nuclear startup stocks like SMR and OKLO, both up well over 100% in the past year despite having little to no revenue.