The convergence of artificial intelligence expansion and America's energy needs is creating an unprecedented opportunity for nuclear power. As data centers consume massive amounts of electricity and tech giants pursue climate goals, nuclear energy is emerging as a critical solution that few investors fully understand.
The AI Power Problem
The artificial intelligence revolution has created an unexpected bottleneck: power generation capacity. Data centers powering AI computation require stable, 24/7 electricity at a scale that intermittent renewable sources struggle to provide consistently. Nuclear energy is base-load power, meaning it operates continuously, while renewable energy sources are intermittent. This allows nuclear power to post an impressive 92.5% capacity factor, versus 35.4% for wind and 24.9% for solar, according to the U.S. Department of Energy.
This reliability matters because data centers cannot afford downtime or power fluctuations. A single large-scale AI training facility can consume as much electricity as a small city, and this demand continues growing as models become more sophisticated and computing requirements expand.
This is why technology firms have been signing power purchase agreements (PPAs) with nuclear power providers. To give just a few examples, Meta has signed 20-year PPAs with Constellation Energy (CEG) and Vistra (VST). Microsoft has a 20-year PPA with Constellation that will support the restart of Three Mile Island Unit 1 in Pennsylvania. Amazon Web Services has a PPA with Talen Energy (TLN) through 2042. Nuclear is uniquely positioned to provide reliable power while not compromising emission targets.
Nuclear's Clean Credentials and Bipartisan Support
Nuclear power addresses both the reliability and environmental challenges facing America's energy future. Nuclear power produces no greenhouse gas emissions during operation and produces lifetime emissions equivalent to those of wind and one-third of those compared to solar, according to the World Nuclear Association. While wind and solar are challenged by intermittency, nuclear can fill any gaps, providing the reliable baseload power needed.
Nuclear’s clean credentials are also part of why it enjoys unique bipartisan support in Washington, D.C. Both the Biden Administration and Trump Administration have taken steps to support nuclear deployment in the US, including supporting domestic production of nuclear fuel and improving the Nuclear Regulatory Commission. The four executive orders President Trump signed in May 2025 were intended to further support US nuclear development.
Small Modular Reactors: The Technology Revolution
Newer technologies like small modular reactors (SMRs) are making nuclear energy more affordable, efficient, and safer. Unlike traditional large nuclear power plants that require significant land area and large encasement towers located far from service areas, SMRs produce up to 300 MW of power and are only a fraction of the size of conventional nuclear reactors.
SMRs can be sited on locations not suitable for larger power plants and may be manufactured offsite and installed where needed. They can be customized for specific locations and should be more affordable and offer stronger safety features than typical large reactors. This flexibility makes SMRs particularly attractive for powering data centers and industrial facilities that require dedicated, reliable power sources.
Technology companies have embraced SMRs, partnering with developers and providing equity investment. For example, Oklo announced in January 2026 an agreement that would allow Meta to pre-pay for power and provide funding to support Oklo’s development of a 1.2-gigawatt power campus in Ohio for Meta’s data centers. Amazon and Talen Energy (TLN) plan to collaborate on deploying SMRs in Pennsylvania, and Amazon is an equity investor in private SMR developer, X-Energy. These are just a few examples.
Major Capacity Expansion Needs Projected
The scale of required nuclear expansion is substantial. McKinsey estimates that electricity demand will triple by 2050, and up to 800 GW of new nuclear capacity could be necessary to reach net-zero targets. These additions would place nuclear at 10%-20% of total electricity produced in 2050.
The International Energy Agency estimates that global nuclear capacity needs to expand by 15 GW per year through 2030 just to maintain nuclear's current 10% share of global electricity production. This represents a significant opportunity for companies across the nuclear energy value chain.
Investment Implications
The nuclear renaissance thesis is supported by converging trends: AI-driven power demand, decarbonization mandates, energy security concerns, and advancing technology. The Range Nuclear Renaissance Index ETF (NUKZ) provides exposure to this theme through a diversified portfolio across four categories: Advanced Reactors, Utilities, Construction & Services, and Fuel.
As of December 31, 2025, NUKZ held positions including Constellation Energy (8.82%), and Oklo Inc (2.42%), Vistra (1.86%), Talen Energy (1.82%), among others representing the nuclear energy ecosystem.
Holdings subject to change.
Learn more about NUKZ, including current holdings, here. >>
Important Risk Information:
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's full or summary prospectus, which may be obtained by visiting www.rangeetfs.com/nukz. Read it carefully before investing.
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve its stated investment objectives. The Fund is non-diversified. Its concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
Investments in the energy industry are subject to significant volatility due to changes in commodity prices. Additional risks include changes in exchange rates, government regulation, world events, economic and political conditions in the countries where energy companies are located or do business, and risks for environmental damage claims. Nuclear companies may be subject to substantial government regulation and contractual fixed pricing, which may increase the cost of doing business and limit the earnings of these companies. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. A significant portion of revenues of nuclear companies depends on a relatively small number of customers, including governmental entities and utilities. As a result, governmental budget constraints may have a material adverse effect on the stock prices of companies in this sub-industry.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in smaller companies typically exhibit higher volatility.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
The Range Nuclear Renaissance Index ETF is distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Sources:
- Range Nuclear Renaissance Index ETF Fact Sheet, Q3 2025
- NUKZ Investment Case Document
- U.S. Department of Energy, Office of Nuclear Energy, "Nuclear Power is the Most Reliable Energy Source and It's Not Even Close," March 24, 2021
- World Nuclear Association website
- Nature Communications, "Geophysical Constraints on the Reliability of Solar and Wind Power Worldwide," October 22, 2021
- International Energy Agency
- McKinsey & Company, "What Will It Take for Nuclear Power to Meet the Climate Challenge," March 2023
- World Nuclear Association, "A Framework for International Regulatory Efficiency to Accelerate Nuclear Deployment," September 2023
