The world is on track to generate more nuclear energy in 2025 than ever before, signaling a new era of growth for the nuclear sector. According to the latest report by the International Energy Agency (IEA), the market, technology, and policy foundations are now in place to support a significant expansion of nuclear energy in the coming decades. The report underscores a major shift, with both the public and private sectors realigning to embrace nuclear power as a solution to meet growing energy demands and decarbonization goals.
IEA Executive Director Fatih Birol emphasized the “strong comeback” for nuclear energy, with the sector poised to reach a record level of electricity generation in 2025. In addition, over 70 gigawatts of new nuclear capacity are currently under construction globally, marking one of the highest levels of nuclear growth in the last 30 years. More than 40 countries are actively planning to increase nuclear’s share of their energy mix.
Despite the well-known challenges of nuclear energy—including the complex issue of nuclear waste management, high upfront costs, and the risk of accidents—advocates argue that nuclear power remains an essential tool in the global quest for clean, reliable, and affordable energy. Unlike renewable sources such as wind and solar, which are variable and weather-dependent, nuclear energy offers a consistent, zero-carbon power source that can operate continuously, around the clock. This capability makes nuclear a compelling option for countries aiming to meet ambitious decarbonization targets.
The IEA’s report highlights the rising global interest in nuclear power, with annual investments in the sector expected to reach $75 billion by 2030. At present, 63 nuclear reactors are under construction, which will add an additional 70 gigawatts of capacity once completed. Much of this investment is driven by growing demand from the technology sector, particularly to power data centers. As the demand for energy skyrockets due to the rise of AI and other data-intensive industries, nuclear energy is increasingly seen as a key solution to meet round-the-clock energy needs.
However, the bulk of this nuclear growth is not coming from the U.S. or Western Europe. Instead, China is leading the charge, largely relying on Russian technology and manufacturing. The IEA report notes that out of the 52 reactors that have started construction globally since 2017, 25 are of Chinese design and 23 are of Russian design. This concentration of nuclear reactor designs and supply chains within China and Russia raises concerns about supply chain vulnerabilities and political risks in the future.
The increased reliance on Russian and Chinese technologies has also inadvertently boosted the Russian economy. While the U.S. and Europe have imposed economic sanctions on Russia over its war in Ukraine, the ongoing nuclear energy buildout in the West has provided Russia with a crucial economic lifeline, as many of the world’s nuclear reactors rely on Russian-enriched uranium. This dependence undermines Western efforts to pressure Russia through energy sanctions, as replacing Russian fossil fuels with Russian nuclear fuel weakens the effectiveness of these sanctions.
The concentration of nuclear fuel production in Russia and China also presents a significant risk to global energy security, particularly if these markets experience supply shocks. The cost of nuclear fuel has already risen sharply since Russia’s invasion of Ukraine, and the geopolitical situation continues to put pressure on global energy markets. To mitigate these risks, experts argue that diversifying nuclear supply chains and reducing dependence on these concentrated markets will be critical for ensuring the long-term stability of nuclear energy.
