Inside Infrastructure: Nuclear in a new light

A surge in interest in nuclear energy is building momentum. The International Energy Agency has confirmed that nuclear’s “comeback” is here, with nuclear producing more electricity globally in 2025 than ever before. In September, UK Prime Minister Keir Starmer declared the start of “a golden age of nuclear”. In this edition of Inside Infrastructure, our team takes a break from work on Sizewell C and one of Europe’s most exciting small nuclear reactor (SMR) roll-outs to examine the outlook for developers, suppliers and investors in nuclear energy. 

Why now?

Three main trends are driving a renewed enthusiasm for nuclear energy, pulling it back into focus after a three-decade slide from 18% to 9% of global energy production: 

• Demand: The demand for clean, secure, independent and continuous energy is growing, driven by global economic growth, electrification of heating and transport, and of course – data and AI.
• Innovation: Advances in nuclear technology, for both GW-scale projects and SMRs, are supporting new use-cases, reducing cost and barriers-to-entry, and re-building public confidence in safety.
• Policy: Governments are mobilising new sources of finance for nuclear, through innovations like revenue support to reduce the upfront capital cost of long construction periods, and reducing delays through regulatory streamlining.

Technology stepping up

Nuclear energy offers stable, low-carbon output which, unlike intermittent renewables, is ideal for the data centre sector’s need for high volumes of reliable and consistent power. This is driving a wave of investment from new entrants to the nuclear market, including the 20-year agreements recently announced by Microsoft with Three Mile Island, and Meta with Constellation Energy. The data sector is also capturing the benefits of advances in SMR technology, which are facilitating the deployment of nuclear more quickly, in a wider range of locations, and with bespoke offtake arrangements. Amazon’s investment in X-Energy and Google’s partnership with Kairos Power to power Google data centres using SMRs signal an unprecedented step-change in industrial support for nuclear deployment. 

Supportive policy remains critical

Nuclear’s dual ability to contribute to decarbonisation and energy security makes it more resilient to the effects of climate politics, global geopolitical shifts and price volatility than other parts of the global energy market. 

This resilience is combining with broader policy initiatives to attract further interest from investors. For example, the UK government’s AI Growth Zone plan places innovative energy solutions, including SMRs, at its heart, starting with specific support for Holtec, EDF and Tritax to develop advanced data centres powered by SMRs at the former Cottam coal-fired power station in Nottinghamshire. 

Meanwhile, the UK government’s Nuclear Regulatory Taskforce is also pushing through the implementation of a package of regulatory change aimed at reducing costs and timescales for delivery. Policy is also developing to manage the risk of supply chain bottlenecks that have affected other clean energy technologies, like wind turbines and offshore cables. 

However, the most impactful policy changes have been those aimed at capital cost reduction and investment support, mobilising investment from traditional infrastructure funds, private equity and venture capital for the first time. For example, marking a sea-change for mainstream investment interest in nuclear globally, the UK Government and EDF signed a landmark deal in July 2025 to commence construction of the 3.2GW Sizewell C project. The project will be developed using a blend of UK sovereign debt and equity, alongside debt from a broad consortium of private and ECA-backed lenders, and equity from EDF, Centrica, La Caisse and Amber Infrastructure. Sizewell C is the first nuclear project in the UK funded through the Regulated Asset Base model regulated by Ofgem, which seeks to facilitate investment by enabling IRR-controlled returns throughout both the construction and operational period.   

Similarly innovative investment support is being deployed for SMRs, but tailored toward kick-starting an industry where the traditional investment barriers to nuclear (high upfront costs and delayed returns) are naturally lower. SMRs are, by nature, designed to be deployed quickly with reduced construction risk, enabling an accelerated move to commercial operations and a lower cost of upfront capital. In June 2025, having gone through a rigorous selection process, the UK government selected Rolls-Royce SMR to build the UK’s first SMRs and pledged over £2.5 billion to support the development programme and accelerate reductions in the cost curve. 

Looking to the future 

The trans-Atlantic partnership of the US-UK nuclear cooperation deal seeks to accelerate the development of nuclear for both countries – fast tracking licensing, facilitating commercial partnerships and collaborating on innovation. Alongside private sector deals in the SMR space, nuclear growth is expected to accelerate.  

Growth is also evident outside of the UK and US, with Germany softening its stance after years of opposition, and China’s significant investment in the sector increasing, with the State Council’s announcement in April of the construction of a further 10 new nuclear power units, with an estimated outlay of $27 billion, bringing the total number of plants confirmed for construction in China to 39. More broadly, many countries who have not deployed nuclear in the past are considering the technology to decarbonise and support energy security, including Singapore, Kenya, Estonia and Norway, among others. 

Despite the prevailing optimism offered by this year’s trends, realising the potential for a true golden age will come with challenges, not least the ongoing efforts on cost reduction, broader deployment of permanent nuclear waste facilities, resolving skill shortages and addressing pinch points in the supply chain. Proactive innovation and policy support can help overcome these hurdles and sustain positive progress.

And finally…. real asset or fake news?

Congratulations to those who correctly identified that solar panels on roofs actually result in the roof space becoming slightly cooler, rather than warmer, as the panels absorb sunlight that would otherwise hit the roof. 

This week we have stayed on theme and tracked down some surprising facts about the nuclear industry – can you spot the fib amongst the facts?

Compact power: Nuclear fuel is extremely dense. All of the used nuclear fuel produced by the U.S. in the last 60 years could fit on an NFL football field at a depth of 10 yards.

A blue mirage: The blue glow you see around a nuclear reaction is caused by electrically charged particles travelling faster than light in water – the light equivalent of a sonic boom.

Early retirement for Homer Simpson: Modern nuclear reactors can now safely run without any human oversight for up to 50 years.

Safety: It’s a No-Brainerium: Nuclear is the second safest form of generation, at 0.03 fatalities per TW/h of electricity production. Only solar is safer at 0.02, with natural gas at 2.8, and coal at 25.6.

As always, we will publish the answer in our next post.