Home / Business and Economy / AI Boom Fuels Uranium Demand: Data Centers Seek Nuclear Power
AI Boom Fuels Uranium Demand: Data Centers Seek Nuclear Power
18 Feb
Summary
- Tech companies are exploring financing for uranium mines due to AI energy needs.
- NexGen Energy's Rook 1 project could supply over a fifth of global demand.
- Uranium prices surged on prospects of increased nuclear power adoption.
The escalating demand for artificial intelligence is creating a substantial need for power-hungry data centers. This trend is consequently driving an increased requirement for new energy generation capacity, including nuclear power plants that necessitate uranium fuel.
NexGen Energy, a Canadian uranium developer, has initiated preliminary discussions with data center providers regarding financing for its Rook 1 uranium project. CEO Leigh Curyer indicated that these tech firms are poised to follow the lead of automakers, who previously provided finance for battery material mine development.
This project, located in Saskatchewan, is anticipated to supply more than a fifth of the global uranium demand. NexGen expects to finalize its funding package in the second quarter and secure final government approval before the end of June, with production potentially starting in 2030.
In recent months, uranium prices have seen a notable increase, trading around $88 per pound and having reached a two-year high above $100 per pound in late January. This surge is attributed to expectations of greater adoption of low-carbon nuclear power by countries like China and India to meet their energy requirements.
