Next-Gen Nuclear Reaches Tipping Point as Tech Giants Ink Strategic Deals

Next-generation nuclear energy is reaching a pivotal moment as major technology firms and energy players align to advance new reactor technologies and fuel sources. Bill Gates' TerraPower and Sam Altman-backed Oklo are among the firms securing contracts with hyperscalers and data center operators (). This development signals a shift in how energy infrastructure is being prioritized globally.

Recent data shows a clear uptick in investment activity. For instance, Amentum Holdings LLC reported Q3 2025 earnings that exceeded expectations, with revenue hitting $3.6 billion and EPS at $0.56. The firm highlighted nuclear technology and strategic divestitures as key performance drivers.

Meanwhile, TVA, the Tennessee Valley Authority, announced that data center demand has grown to 18% of its industrial load in 2025 and anticipates it to double by 2030. This has prompted the utility to invest in 6.2 gigawatts of new generation capacity, including small modular reactors.

How Are Key Players Positioning Themselves in the Nuclear Energy Space?

TerraPower and Oklo are not the only names making waves in next-gen nuclear. Jaguar Uranium, a developer of nuclear fuel uranium exploration projects, recently filed for a $30 million IPO in the U.S. The company is exploring uranium deposits in Colombia and Argentina, which could support the next wave of reactor development.

Amentum has also aligned its growth strategy with nuclear technology and infrastructure divestitures, with a FY2025 revenue guidance range of $13.975-$14.175 billion and adjusted EPS between $2.05-$2.20. These metrics underscore the firm's confidence in the long-term potential of the nuclear sector.

TVA has taken a more direct approach. In December 2025, the utility received approval to extend the license of its 4GW Browns Ferry Nuclear Plant through the mid-2050s and secured a $400 million DOE grant to develop small modular reactors at Clinch River. TVA signed a 50MW PPA with Kairos to build its first commercial unit.

What Are the Broader Implications for Energy and Tech Markets?

The convergence of nuclear energy and digital infrastructure is reshaping global energy strategies. TVA's president, Don Moul, emphasized the importance of aligning with U.S. energy policy goals, including expanding the energy supply and supporting innovation.

India and the U.S. have also been strengthening their collaboration in this area. India's Union Minister for Electronics and IT, Ashwini Vaishnaw, highlighted the growing investments by U.S. tech giants like Google, Microsoft, and Amazon into India's data center market. These investments are expected to strengthen the country's AI infrastructure and create opportunities for startups.

For investors, the sector presents a dual opportunity. Amentum's financial performance and strategic focus show how traditional energy firms are adapting to new technologies. Meanwhile, smaller entrants like Jaguar Uranium and Kairos are leveraging the surge in demand for nuclear materials and reactor designs.

What Do Investors Need to Watch for in the Near Term?

The next few quarters will be critical for firms in the next-gen nuclear space. Amentum's upcoming February 9, 2026, earnings report could provide further insight into its strategy and performance.

TVA's 6.2GW generation expansion, with over 3.7GW under construction, is another key watchpoint. The utility aims to avoid rate pressure on other consumers while meeting the rising demand from data centers.

Meanwhile, IPO activity is heating up, with Jaguar Uranium and other firms looking to raise capital in early 2026. These developments suggest that next-gen nuclear is becoming a more mainstream investment category, especially as tech demand for clean, reliable power continues to grow.

The broader market is also reacting. The Renaissance IPO Index is down 8.7% year-to-date, but international IPOs are up 10.7%. This divergence suggests that while U.S. markets remain cautious, global markets are more optimistic about high-growth sectors like nuclear energy and digital infrastructure.

For now, the momentum appears firmly on the side of next-gen nuclear. With partnerships forming between tech firms and energy companies, the sector is positioned for significant growth in the coming years.