Meta goes nuclear

What’s the only source of energy robust enough to power millions of high schoolers across America simultaneously asking ChatGPT to do their homework?

The answer is nuclear energy—at least if you ask big tech.

Today, nuclear power producer Constellation Energy signed a 20-year agreement with Meta Platforms to fuel the big tech company’s energy-intensive data center buildout. Constellation Energy's shares soared on the news, though it gave up its gains and ended the day down 0.13%.

Silicon Valley giants are doubling down on nuclear, a cleaner alternative to fossil fuels that produces more energy than other sustainable alternatives such as wind and solar. While this is Meta’s first foray into nuclear, the deal isn’t Constellation’s first Mag 7 rodeo. The energy provider made headlines last September for restarting Three Mile Island, the site of the biggest nuclear meltdown in US history. Now why would they do that? To sell power to Microsoft, of course.

And back in October, Amazon inked an agreement with Dominion Energy to invest $500 million into a new power plant. Big tech is promoting nuclear beyond dealmaking, too: In March, a group of tech companies including Amazon, Google, and Meta signed a pledge with the World Nuclear Association calling to triple nuclear energy worldwide by 2050.

The White House is hoping to up the ante on nuclear as well, promising to do everything in its power to quadruple nuclear power over the next 25 years.

How to invest in the nuclear boom

Nuclear power producers such as Constellation, Vistra Corp, Talen Energy, Oklo, and NuScale Power Corp are the obvious beneficiaries of this plan, given lucrative contracts with tech companies could usher in booming business.

Utility stocks will also get a broad boost from more demand for power in general. Goldman Sachs has pointed to utility names such as NextEra, Energy Xcel Energy, and Sempra as beneficiaries of the AI power boom.

Plus, more demand for nuclear energy equals higher demand for nuclear fuel, right? Actually, spot uranium prices have failed to gain momentum despite the resurgence of nuclear power, the Wall Street Journal reported. An oversupply of uranium is largely to blame, and some analysts even predict spot prices will fall from just above $70 per pound today to $60 by 2026. That didn’t stop several uranium stocks like Uranium Energy and Centrus Energy from climbing today, however.—LB