Why Nuclear Stocks Are Hot in the AI Era — The Power Demand and SMR Connection

The Korean government announced it will decide this month whether to add more nuclear power and small modular reactors (SMRs) to its 12th Basic Plan for Electricity Supply and Demand — a 15-year national energy roadmap. It sounds like dry energy policy news, but it's really an AI story.

How much electricity does AI actually use?

A single ChatGPT query consumes about 10 times more electricity than a Google search. Multiply that by hundreds of millions of daily queries worldwide. Training AI models requires even more. The electricity demand of data centers running AI servers for Microsoft, Google, and Amazon is growing explosively.

Why is nuclear emerging as the answer?

Tech companies have a very specific power checklist: ① reliable 24/7 supply, ② zero carbon (for ESG compliance), ③ large-scale capacity. Solar doesn't work at night. Wind depends on weather. Nuclear checks all three boxes.

Microsoft has already agreed to restart the previously closed Three Mile Island nuclear plant in the US. Google has signed contracts with SMR developers. Big Tech is reaching directly into nuclear energy — and it's accelerating.

What is an SMR?

SMR stands for Small Modular Reactor. Traditional nuclear plants cost trillions of won and take 10–20 years to build. SMRs are about one-tenth the size, factory-built and assembled on-site — dramatically cutting construction cost and time. Bill Gates' TerraPower is a well-known SMR company.

Why does the electricity plan matter for stocks?

The Basic Plan for Electricity sets Korea's 15-year energy blueprint — which sources get built, and how much. If nuclear is included, related companies secure long-term contracts, which is positive for their stock prices. If excluded, uncertainty grows. That's why nuclear stocks are so sensitive to government announcements.