Electrification Set to Surge in the US with AI and Nuclear Revival by 2035

The article discusses the growing demand for electricity in the US, particularly for AI data centers, which is projected to increase from 4 GW in 2024 to 123 GW by 2035. This surge in demand is driving the push towards grid-scale electrification, with the nuclear industry experiencing a revival as a potential solution to meet the increasing power needs. The article also mentions the theme of US electrification as a key focus area for investors.

The demand for electricity in the U.S. is experiencing a significant surge, particularly driven by the growth of AI data centers. According to Deloitte [1], AI data center power demand is projected to grow more than thirtyfold by 2035, rising from 4 gigawatts (GW) in 2024 to 123 GW. This unprecedented growth signals a structural shift where AI becomes the predominant driver of grid load growth, placing unprecedented pressure on utilities, power production, grid planning, and the construction sector.

In response to this increasing demand, Constellation Energy (CEG) has announced plans to invest billions of dollars in expanding nuclear power capacity. The company intends to restart the Crane Clean Energy Center, which is expected to come online in 2027 with 835 megawatts (MW) of power. This investment is projected to create 3,400 jobs and generate $3.6 billion in tax revenue and $16 billion in economic value [2].

The nuclear industry's revival is part of a broader effort to scale clean energy infrastructure and strengthen grid resilience to support U.S. electrification. The U.S. Army's deal with Palantir Technologies (PLTR) also reflects this trend. The agreement consolidates 75 existing software and data analytics contracts into a single, streamlined enterprise contract worth up to $10 billion over 10 years, aiming to accelerate the integration of advanced decision-making tools and predictive maintenance software [3].

The push towards grid-scale electrification is not limited to infrastructure. Amazon (AMZN) has recently deployed its one-millionth robot to a fulfillment center in Japan, joining a global fleet operating across more than 300 facilities. The company also unveiled DeepFleet, a generative AI foundation model that reduces robotic congestion and improves travel efficiency by approximately 10% [7]. This innovation demonstrates how AI foundation models are reshaping manufacturing and fulfillment infrastructures.

Investors are increasingly focusing on the theme of U.S. electrification. The passage of the GENIUS Act establishes the first comprehensive U.S. regulatory framework for payment stablecoins, fostering institutional confidence in using stablecoins for payments, remittances, and tokenization [8]. This regulatory clarity is expected to drive broader FinTech adoption.

The U.S. Infrastructure historic rail merger between Union Pacific (UNP) and Norfolk Southern (NSC) is another significant development. The combined company will create the country's first coast-to-coast freight rail network, spanning over 50,000 miles and connecting 43 states, 100 ports, and 10 international gateways. The merger is expected to strengthen U.S. supply chain resilience and accelerate the revitalization of domestic manufacturing [6].

In conclusion, the growing demand for electricity in the U.S., particularly for AI data centers, is driving a push towards grid-scale electrification. The nuclear industry's revival, advancements in AI technology, and infrastructure investments are key components of this effort. Investors are increasingly focusing on this theme, recognizing its potential for growth and resilience.

References:
[1] Deloitte Report: AI Data Center Power Demand to Surge 30x by 2035. https://seekingalpha.com/article/4815911-next-big-theme-august-2025
[2] Constellation Energy. (2025, July 15). Constellation Commits to Billions of Dollars in Energy Investments at Inaugural Pennsylvania Energy and Innovation Summit. https://seekingalpha.com/article/4815911-next-big-theme-august-2025
[3] CNBC. (2025, August 1). Palantir lands $10 billion Army software and data analytics contract. https://seekingalpha.com/article/4815911-next-big-theme-august-2025
[6] Union Pacific. (2025, July 1). Union Pacific Agrees to Acquire Norfolk Southern in $85 Billion Deal. https://seekingalpha.com/article/4815911-next-big-theme-august-2025
[7] Amazon. (2025, July 2). Amazon Hits 1 Million Robots and Unveils an AI Model That Orchestrates Its Fleet. https://seekingalpha.com/article/4815911-next-big-theme-august-2025
[8] GENIUS Act. (2025, July 1). The GENIUS Act Establishes a Comprehensive Regulatory Framework for Payment Stablecoins. https://seekingalpha.com/article/4815911-next-big-theme-august-2025