Nuclear Energy's Next Act: Why Constellation and NuScale Are Leading the Charge in a Data-Centric World

The rise of AI and data centers has ignited a silent energy revolution. As tech giants race to power their servers, nuclear energy—once sidelined by renewables—is resurging, fueled by U.S. policy reforms and groundbreaking partnerships. Two companies at the heart of this shift, Constellation Energy (CEG) and NuScale Power (SMR), are positioning themselves as critical players in a market where reliable, carbon-free power is no longer a luxury but a necessity.

Policy as a Catalyst: Tax Credits, Executive Orders, and Global Ambition

The U.S. government has leaned hard into nuclear energy over the past three years. The Inflation Reduction Act (IRA) introduced tax credits for existing nuclear plants and advanced reactors, while 2025's executive orders under President Trump prioritized relicensing aging reactors, fast-tracking small modular reactors (SMRs), and reducing regulatory hurdles. These policies aren't just about energy security—they're about securing a slice of the $650 billion U.S. energy infrastructure market projected by 2030.

Constellation Energy (CEG): A Steady Hand in an Uncertain World

Constellation's June 2025 20-year power purchase agreement (PPA) with Meta is a masterstroke. The deal guarantees the continued operation of its Clinton nuclear plant, supplying 1.15 GW of carbon-free energy—enough to power 1 million homes—to fuel Meta's AI-driven data centers. Key to this partnership is the IRA's §45U tax credit, which subsidizes zero-emission nuclear generation.

The PPA sent CEG's stock soaring by 15% in June 2025, reflecting investor confidence in its $13.5 million/year tax revenue and its role as a bridge between legacy nuclear assets and tech giants.

Why Invest in CEG?
- Low execution risk: The Clinton plant is operational, and the PPA locks in long-term cash flows.
- Diversified portfolio: CEG's mix of nuclear, renewables, and retail energy services insulates it from volatility.
- Policy tailwinds: Relicensing aging reactors (average age 40 years) to 80 years aligns with its asset-heavy model.

NuScale Power (SMR): The High-Stakes Future of Nuclear

NuScale is the poster child of SMR innovation. Its NRC-certified 77 MWe VOYGR™ design—the first SMR approved in the U.S.—is a game-changer. With 12 modules, a single plant can scale from 77 MW to 924 MW, offering unmatched flexibility for data centers and industrial users.

The company's $2 billion Ohio/Pennsylvania project with Standard Power and ENTRA1 Energy aims to deliver 1.8 GW of carbon-free power by 2029, targeting hyperscalers like Amazon and Meta. Internationally, its Romanian RoPower plant is advancing, demonstrating global demand.

Despite surging interest (its stock rose 300% in 2024), NuScale faces hurdles. The canceled Utah project (a $9.3 billion write-off) and ongoing negotiations with tech firms highlight execution risks. Yet its $521 million cash reserve and NRC milestones (uprated design approval by mid-2025) suggest it's on track.

Why Bet on SMR?
- First-mover advantage: NRC certification gives it a decade-long lead over competitors.
- AI/data center alignment: SMRs' 24/7 baseload power and modular scalability are a perfect match for energy-hungry tech.
- Global expansion: 49 countries have U.S. nuclear cooperation agreements, opening markets for NuScale's export-ready tech.

Risks to Consider

• Valuation concerns: SMR's stock price may outpace its revenue growth (2024 net loss: $180 million).
• Regulatory delays: SMR's 2029 Ohio project timeline hinges on NRC approvals and partner commitments.
• Cost overruns: Past nuclear projects (e.g., Vogtle) saw costs balloon; SMR's factory-built approach aims to mitigate this but is unproven at scale.

Investment Strategy: A Dual-Pronged Approach

• CEG as a core holding: Its stable cash flows and policy-backed PPAs make it a low-risk, dividend-friendly play.
• SMR as a speculative growth bet: For aggressive investors, NuScale's SMR tech and partnerships position it to dominate a $1.3 trillion clean energy market—provided it executes on its 2029 targets.

Final Take

The AI era isn't just about silicon; it's about electrons. Nuclear energy, once a relic of the 20th century, is now a linchpin for powering the future. With policy backing, tech partnerships, and innovative designs, CEG and SMR are two names to watch—one for stability, the other for disruption.

Invest wisely, but don't ignore the reactors.