A storm of energy demand triggered by AI is pushing nuclear power back to the center stage globally.
According to a report from the JPMorgan Asia Pacific analyst team on October 20, technology giants are embracing nuclear power in unprecedented ways, particularly small modular reactors (SMRs), to meet the uncontrollable electricity demands of their data centers.
At the same time, a fierce competition in nuclear fusion technology aimed at creating a &#34;man-made sun&#34; is unfolding in innovation hubs like the United States, signaling a critical moment in the global energy transition. The report indicates that this transformation is not limited to traditional nuclear power plants but extends to two key tracks:
<blockquote>
<ul>
<li>The first is small modular reactors and related supply chains that meet the current electricity gap caused by AI, presenting significant opportunities for countries like South Korea and Japan with mature technology and manufacturing capabilities.</li>
<li>The second is nuclear fusion technology, representing the future, where breakthroughs led by the private sector in the United States are attracting massive capital and are expected to redefine the global energy landscape in the next decade.</li>
</ul>
</blockquote>
Analysts believe this means that the entire nuclear energy value chain, from upstream uranium mining to midstream equipment manufacturing and downstream innovative technologies, is filled with substantial structural investment opportunities.
<h2>Nuclear Energy as the &#34;Heart&#34; of AI</h2>
The artificial intelligence revolution is reshaping the energy landscape, with AI and hyperscale data centers becoming the core drivers of clean, reliable power.
The report points out that technology giants are under dual pressure to meet the rapidly growing electricity demand and fulfill their own &#34;net zero&#34; commitments. This makes zero-emission, high-stability nuclear energy, particularly small modular reactors (SMRs), an ideal choice for them.
Data shows that since October 2024, hyperscale data center operators have signed over 23 gigawatts of new nuclear power projects. In September of this year, Microsoft became the first global technology company to join the World Nuclear Association, marking the arrival of a new era of strategic alliance between technology and nuclear energy.
The report states that the United States has raised its nuclear power installation capacity target for 2050 to 400 gigawatts, indicating that investments of up to approximately $600 billion may be needed in the future.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1af7a1e8-5c35-4c8e-a6c8-bb02fa49f6ca.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1af7a1e8-5c35-4c8e-a6c8-bb02fa49f6ca.png"/> (Forecast of nuclear power installation capacity from 2030 onwards, unit: gigawatts)
From Amazon to Google, technology companies are deeply engaging in the nuclear energy sector through direct investments, power purchase agreements (PPAs), and other means, becoming key players in driving the revival of nuclear energy.
<h2>The Ultimate Energy Race: A Revolution of the &#34;Man-Made Sun&#34;</h2>
If small modular reactors based on nuclear fission are the &#34;practical solution&#34; to current energy anxieties, then nuclear fusion is the &#34;ultimate solution&#34; to the energy future.
The fuel for nuclear fusion is virtually inexhaustible (derived from seawater), produces no long-term radioactive waste, and has no meltdown risk like traditional nuclear fission reactors
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ce8f233f-295f-4131-975b-8cb4e9fa7e19.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ce8f233f-295f-4131-975b-8cb4e9fa7e19.png"/> (Comparison of Major Power Generation Technologies)
In a survey of 44 respondents, most believe that the first nuclear fusion reactor capable of achieving sufficiently high efficiency for commercial viability is expected to be operational between 2036 and 2040.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/00cf9381-2d4f-4306-9b35-6dadf7057e53.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/00cf9381-2d4f-4306-9b35-6dadf7057e53.png"/> (Expected timeline for the first low-cost, high-efficiency fusion reactor with commercial viability)
However, JP Morgan expressed skepticism, believing that true commercialization will take longer to achieve. In terms of technical challenges, most respondents pointed out issues such as the efficiency of nuclear fusion energy, funding support, and the self-supply capability of tritium.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1a6f02b9-5d3c-43a2-b7b4-2f780797632e.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1a6f02b9-5d3c-43a2-b7b4-2f780797632e.png"/> (Main challenges facing nuclear fusion energy development by 2030)
The report indicates that breakthroughs in high-temperature superconducting (HTS) technology are key to the nuclear fusion energy race. Traditional superconductors can only operate at liquid helium temperatures, which is clearly a problem for a device primarily designed to generate heat.
The development of high-temperature superconductors, especially the commercialization of rare earth barium copper oxide (REBCO) tapes, has brought new vitality to this field. Several startups are seizing this opportunity and rapidly advancing towards the goal of commercializing fusion energy. The report highlights several key developments:
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<ul>
<li>Google signed a power purchase agreement with the startup Commonwealth Fusion Systems (CFS) to purchase electricity from its first commercial fusion power plant, which will have a capacity of 200 megawatts. This is the most significant vote of confidence from the business world in fusion energy.</li>
<li>Startups in the United States are attracting massive investments. The total industry investment has reached $9.7 billion, with $2.6 billion raised just last year. TAE Technologies has raised over $1.2 billion, while Helion Energy, backed by OpenAI founder Sam Altman, has secured $500 million in funding, with a commitment to add another $1.7 billion upon achieving technical milestones.</li>
</ul>
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These breakthroughs driven by private enterprises are transforming nuclear fusion from a distant scientific concept into a cutting-edge field with a clear path to commercialization and enormous investment potential.
<h2>Strategic Opportunities in the Asia-Pacific Supply Chain</h2>
As the revival of nuclear energy gains momentum in developed markets like the United States and the industry transitions to nuclear fusion, the Asia-Pacific supply chain, with its mature manufacturing capabilities and cost advantages, will play a crucial role
The report particularly emphasizes the outstanding advantages of South Korean equipment suppliers.
South Korean companies are known for their expertise, cost-competitive export capabilities, and successful delivery records on projects such as the Barakah Nuclear Power Plant in the UAE.
As global markets seek diversified and reliable supply chain partners, South Korean companies are expected to benefit from the nuclear power revival in developed markets and the growing demand for SMR equipment.
Meanwhile, Japanese suppliers are also ready to seize new opportunities.
With Japan's plans to restart nuclear reactors steadily progressing, the goal is to increase the share of nuclear power to about 20% by fiscal year 2040, with companies like IHI (7013 JP) set to benefit from domestic restarts and equipment orders.
Additionally, Japanese companies are involved in the design and value chain collaboration of several international SMR projects, allowing them to secure a place in the global nuclear technology transition.
The Asia-Pacific region's dominant position in the global construction of new reactors is also very solid, accounting for 69% of the planned new reactors worldwide by 2025. Specifically:
<blockquote>
<ul>
<li>India's ambitions are particularly notable, aiming to increase its nuclear power installed capacity from the current 8.8GW to 23GW by 2031-32, with a grand blueprint to reach 100GW by 2047.</li>
<li>Japan's &#34;Seventh Strategic Energy Plan&#34; confirms that by fiscal year 2040, nuclear power will account for about 20% of the electricity structure, which means the orderly restart of several existing reactors.</li>
<li>South Korea's 11th Basic Plan proposal aims to increase the share of nuclear power to over 35%. Despite discussions of some political risks, public support for nuclear energy has become more favorable due to rising electricity prices.</li>
</ul>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/789cac2a-e303-47a8-84b8-536812e756d3.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/789cac2a-e303-47a8-84b8-536812e756d3.png"/> (Comparison of the construction of nuclear reactors on October 25, September 24, and June 23)
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Overall, the strong value chain and firm regulatory commitments in the region are driving the Asia-Pacific region to maintain its leading position in global nuclear power construction

JP Morgan believes that the nuclear fusion technology race is intensifying in innovation hubs such as the United States. This transformation extends to two key tracks: one is small modular reactors and related supply chains that meet the current AI power gap, and the other represents the future of nuclear fusion technology. The breakthroughs led by the private sector in the United States are attracting massive capital and are expected to redefine the global energy landscape in the next decade

- A surge in energy demand driven by AI is bringing nuclear power back to the global forefront, particularly small modular reactors (SMRs) to meet the rising electricity needs of data centers.  
- The U.S. aims to increase its nuclear capacity to 400 GW by 2050, requiring significant investment, while private sector breakthroughs in fusion technology are attracting substantial capital.  
- The Asia-Pacific supply chain, especially South Korea and Japan, is poised to play a crucial role in this nuclear renaissance, capitalizing on their manufacturing capabilities and growing demand for nuclear energy.

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