Attack of Nuclear Energy! Key Segment of the AI Race, Global Industrial Revival Accelerates
Alibaba, together with China National Nuclear Power and other companies, has established a nuclear energy company in Xiangshan with a registered capital of 250 million yuan.
Trump claims that the United States is vigorously developing nuclear energy.
A global industrial race characterized by FOMO from both China, the US, and AI is accelerating.
1. What happened? Industrial FOMO between China and the US
China and the US are both accelerating their FOMO regarding the nuclear energy industry.
On one side, Trump just loudly proclaimed at the Davos Forum that “America is vigorously developing nuclear energy.”
On the other, nuclear power is once again welcoming private investment: Alibaba Group and Youngor along with other Zhejiang private enterprises have invested in Jin Qimen Nuclear Power Project, establishing China National Nuclear (Xiangshan) Nuclear Energy Co., Ltd. with a registered capital of 250 million yuan. The roster of shareholders includes China National Nuclear Energy (Zhejiang) Co., Ltd., China National Nuclear Energy Development (Beijing) Co., Ltd., Ningbo Riyue Group Co., Ltd., Minsheng Life Insurance Co., Ltd., Hongrun Construction Group Co., Ltd., Shanghai Yiqi Network Technology Co., Ltd., and Youngor Group Co., Ltd.
Last week, domestic company Star Ring Fusion just completed a 1 billion yuan Series A financing, while overseas Meta placed a massive order for 6GW of nuclear power to lock in future energy. According to a report by energy consultancy Grid Strategies, by 2030, US electricity usage is expected to grow by at least 30%, with most of the new demand coming from data centers. Power supply has become one of the most prominent bottlenecks in the development of artificial intelligence. This is why tech giants are so “thirsty” for nuclear energy.
Besides China and the US, Europe is also accelerating its “rethink”—German Chancellor Merz admits shutting down nuclear energy was a strategic mistake; France, the UK, and other major countries have all changed their policy attitudes towards nuclear energy. The World Nuclear Association predicts that by 2050, global installed capacity will reach 1,363GW, more than three times the current operating capacity of 397GW, signalling an imminent revival of the industry. The IEA has raised its global nuclear power installation expectations for five consecutive years.
2. Why is it important? The industry is entering an acceleration phase
The global nuclear energy industry is witnessing a rapid transition from a “controversial energy” to a “strategic foundational energy.” Four dimensions—policy shift, technological breakthroughs, international consensus, and energy security needs—are jointly constructing a solid logic for the revival of the nuclear energy industry.
① Policy shift: From “abandoning nuclear” to “embracing nuclear,” many countries are undergoing a historic reversal in their position.
Europe’s traditional anti-nuclear camp is continuously dissolving: Germany will officially abandon its long-term anti-nuclear stance in May 2025, Spain will overturn its plan to shut down seven operational nuclear units in June of the same year, and Sweden, Belgium, Switzerland, and others have clarified support for life extension or new construction through legislation or policy adjustments. The EU Supreme Court ruled in September 2025 that including nuclear energy in the “sustainable finance taxonomy” is legal and effective, clearing regulatory and funding obstacles for nuclear power projects.
② Technological breakthroughs: Fourth-generation nuclear power achieves a critical leap from demonstration to commercialization
China is in a leading position in the global commercialization process of fourth-generation nuclear power: In 2023, the world's first fourth-gen high-temperature gas-cooled reactor (Shidaowan HTR-PM) was commissioned; In 2025, the sodium-cooled fast reactor CFR1000 will complete preliminary design and be ready for approval; In the same year, the inland small modular reactor “Linglong One” successfully passed its cold test. The US will start construction of three fourth-gen reactors (sodium-cooled fast reactor, high-temperature gas-cooled reactor) in August–September 2025. These progressions show that fourth-gen nuclear technology has emerged from the laboratory and entered the stage of engineering and commercial promotion.
③ Safety consensus: “Inherent safety” has become the core foundation for public acceptance and policy support
Fourth-gen nuclear power achieves safety in accident scenarios by relying solely on natural physical laws, thanks to designs like “negative temperature coefficient,” “passive cooling,” and “multiple containment”—which fundamentally addresses public anxiety from historical incidents such as Fukushima and Chernobyl. The International Atomic Energy Agency (IAEA) has raised its nuclear power installation expectations for five consecutive years; the “World Nuclear Outlook Report” for 2025 forecasts global nuclear capacity to reach 1,428GW by 2050, up from the 2023 “Tripling Nuclear Energy Declaration” of 1,200GW.
④ Dual drivers of energy security and climate goals
After the Russia-Ukraine conflict, Europe has an urgent need for energy independence; simultaneously, global carbon neutrality targets are forcing power systems to decarbonize. As high energy density, low-carbon, and stable baseload energy, nuclear power is a rare option that meets both energy security and climate goals. Nuclear energy’s multi-functional extensions (heating, hydrogen production, seawater desalination, etc.) further enhance its economic and strategic value.
2026 will be a key year for the global nuclear energy industry to transition from “planning outlook” to “large-scale implementation,” and the acceleration of the industry will have multiple layers of support:
① Policies enter an intensive implementation period, with project approval and commencement speeding up
Nuclear power targets set by countries during 2023–2025 will enter the implementation phase from 2026. China approved 21 reactor units in 2024–2025, with a construction peak coming in 2026; The US Presidential Executive Order “Department of Energy Reactor Testing Reform” sets a milestone for July 2026, promoting the rapid launch of advanced reactors;
② Fourth-gen nuclear technology reaches commercialization threshold
In 2026, China's sodium-cooled fast reactor demonstration project (Xiapu No. 2) is expected to be built, and follow-up high-temperature gas-cooled reactor projects (Xuwei Phase I) are likely to be approved; US three experimental reactors enter a critical period of construction. Advantages of fourth-gen nuclear power—safety, fuel utilization (fast reactors can boost uranium utilization to 60–70%), and multi-functionality—will be validated in these projects. Small modular reactors (SMR) will also enter the grid-connecting and commissioning phase in 2026, opening up opportunities for distributed nuclear applications.
③ Industry chain maturity and improved financing environment
China has achieved full domestic production of nuclear power equipment—from pressure vessels, steam generators, to main pumps and control rod drive mechanisms—ensuring supply chain security and autonomy. Internationally, the US lifted its ban on financing overseas nuclear power projects; multilateral development banks and private equity are now including nuclear power in green investments.
The nuclear energy industry is entering a triple-overlapping cycle driven by “policy → technology → system demand,” with 2026 becoming a key year for capacity release and deepening investment consensus. Focusing on leading enterprises with core technology, domestic substitution capacity, and project resilience is recommended. Also, we remind users: on December 23, Trump’s “Trump Media” company agreed to merge with fusion energy startup TAE Technologies in a $6 billion deal. Stimulated by the news, DJT’s share price once surged nearly 70%. Whether nations, multinational giants, or Trump himself, all are betting on the revival of the nuclear energy industry.
3. What’s next to watch? Technological iteration and capital spending
With the nuclear energy industry accelerating, how to identify key resilient segments within the industry?
① Core equipment suppliers for the nuclear island: high barriers, high concentration, the strong get stronger
1）Pressure vessels, steam generators, and internal components: Shanghai Electric, Dongfang Electric, China First Heavy Industries, etc. dominate in the third-gen reactors (Hualong One, Guohe One) and fourth-gen reactors (high-temperature gas-cooled reactor, sodium-cooled fast reactor), especially Shanghai Electric with distinct advantages in Guohe One and high-temperature gas-cooled reactor equipment supply.
2）Main pumps, control rod drive mechanisms: Zhejiang Fu Holdings has achieved domestic substitution of main pumps for sodium-cooled fast reactors (replacing Russian products), and increased market share in the control rod drive mechanisms for Hualong One, indicating potential for upgrades from component to system.
3）Special materials and welding technology: Fourth-gen reactors have higher requirements for material resistance to high temperatures, radiation, and corrosion; relevant specialty alloys, graphite materials, and ceramic coatings suppliers will benefit.
② Specialized technology and engineering service companies for fourth-gen reactors
1）High-temperature gas-cooled reactors: Modular design, high-temperature processes (supporting hydrogen production, heating) broaden application scenarios. Focus on companies involved in high-temperature reactor design, fuel sphere manufacturing, and helium turbine technology.
2）Sodium-cooled fast reactors: Liquid metal cooling systems and post-fuel processing are high technical barriers; institutions like the China Institute of Atomic Energy and China National Nuclear Corporation lead, and relevant supporting enterprises are expected to participate in demonstration project supply chains.
3）Small modular reactors (SMR): Linglong One, Aalo-X and other small reactor projects will enter key commissioning stages in 2026; modular construction, mobile power sources, and island power supply scenarios may become new growth points.
③ Nuclear fuel cycle and back-end processing
1）Uranium resources and fuel processing: Global uranium prices are entering an upward cycle with the nuclear renaissance; companies with uranium resources or component processing capabilities will benefit.
2）Fast reactor fuel and post-processing: Fast reactors can use U238 and existing nuclear waste; the fuel cycle system (including spent fuel processing, MOX fuel manufacturing) is key for sustainable development of fourth-gen reactors, and the localization of related technologies is worth attention.
④ Operation and life extension services
1）Unit life extension and technical upgrades: The average age of existing global nuclear units is rising, with a vast market for extending lifespans (from 40 years to 60 or even 80 years) and for upgrades.
2）Comprehensive utilization of nuclear energy: Non-electric applications such as nuclear heating, hydrogen production, and seawater desalination will enter demonstrative promotion in 2026; innovative business models may bring new revenue growth points.
Standing at the historical crossroads of 2026, the global nuclear energy industry is experiencing its most profound paradigm shift since the 1970s. If the logic of nuclear energy over the past five years was “energy security” and “carbon neutrality,” then the core driving force in 2026 has evolved into “the ultimate energy base for the AI computing power race.” Nuclear energy is no longer just a supplement to public utilities, but a core variable in the great power technology competition. With the large-scale implementation of third-gen nuclear power, commercial pilots of fourth-gen nuclear power, and the frenzied influx of capital into controlled nuclear fusion, the nuclear energy industry is at the inflection point of an accelerated uptrend.
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