Big Tech is reshaping the funding landscape for new nuclear technologies as it seeks to bolster electricity supply for ​power-hungry AI data centers, inking deals that offer nuclear companies both funding and a clearer path to making money.

Several U.S. ‌firms are developing new modular reactors that are smaller, more advanced and scalable than conventional nuclear plants. But none have begun commercial electricity production yet as projects face challenges such as financing constraints and first-of-its-kind risks.

However, the race to secure adequate energy to power data centers amid the burgeoning demand from AI is giving a fresh ​boost to the sector.

In January, Meta (META.O), opens new tab agreed to help fund the development of two Terrapower units capable of providing as much as 690 ​MW of power. It has also signed a deal with Oklo (OKLO.N), opens new tab to develop a 1.2 GW nuclear technology campus ⁠in Ohio.

Amazon (AMZN.O), opens new tab, meanwhile, is working with X-energy to bring online more than 5 GW of small modular reactors in the U.S. by 2039, ​while Alphabet's Google (GOOGL.O), opens new tab has signed an agreement with Kairos Power, aiming to bring online its first small modular reactor by 2030.

With these deals, tech giants introduce ​their top-rated corporate balance sheets into a sector historically reliant on the very regulated utility rate bases, said Shioly Dong, senior analyst at BMI, a unit of Fitch Solutions.

"They create the revenue certainty that commercial banks will require for the construction debt," she said.

INVESTORS INTERESTED, BUT CAUTIOUS

U.S. electricity use is poised to increase by 1% this year ​and 3% next year, according to the Energy Information Administration, driven largely by data center demand.

Against this backdrop, small modular reactors are emerging as ​more financeable nuclear alternatives because their modular scale and shorter construction timelines reduce upfront capital exposure, said Tim Winter, portfolio manager of the Gabelli Utilities Fund (GABUX) at ‌Gabelli Funds, ⁠adding that he is closely monitoring companies like NuScale and Oklo.

However, the industry - described by analysts and experts as "advanced nuclear" - still faces many hurdles, including high construction and technology risks, due to which institutional investors, while interested, are not yet stepping into the sector at scale.

A looming skills shortage ⁠and competition ​with other industries - including data centers - for workers like electricians and pipefitters could become a ​chokepoint as the industry looks to scale up, a recent report by the Nuclear Scaling Initiative noted.

"Commercialization and large-scale deployment still depend on execution across licensing, fuel supply, construction and ​financing, so demand alone is not the only factor in accelerating commercialization of advanced nuclear," said Oklo's Chester. (Reuters, 2026-04-10)