GlobalData’s latest report sends a clear signal: nuclear power is staging a comeback, and it’s poised to play a significant role in the global energy transition. The data and analytics group projects that global nuclear power capacity will surge to 494 GW by 2035, a substantial increase from the 395 GW expected in 2024. This growth, driven by advancements in small modular reactors (SMRs) and a worldwide shift towards cleaner energy, is not just about capacity; it’s about meeting the dual challenges of energy security and climate change.
The report, released April 21, underscores that recent gains in nuclear power have been fueled by a push towards low-carbon baseload power. This trend is bolstered by measures promoting energy security and the decarbonization of industrial sectors. The increase in capacity to 494 GW over the next decade represents a significant 100-GW jump, highlighting the sector’s resurgence. GlobalData anticipates that nuclear power generation will rise from 2,616 TWh in 2024 to 3,410 TWh in 2035, reflecting a compound annual growth rate (CAGR) of 2%. Currently, nuclear power accounts for about 9% of the world’s electricity production, a figure that is set to rise as countries increasingly turn to nuclear to meet their energy needs.
The report notes that countries with older reactors are extending their operating licenses, while others, notably China and several Asian nations, are expanding their nuclear power fleets. Mohammed Ziauddin, a power analyst at GlobalData, points to several key drivers behind this trend: geopolitical tensions driving a focus on energy security, increasing demand for low-carbon dispatchable power, government support through regulations and incentives, advancements in SMRs and next-gen technologies, and a surge in electricity demand from data centers.
The United States leads the world in nuclear output, with 97 GW of installed generation capacity and 787.6 TWh of generation last year. This figure was boosted by the addition of two new reactors at Plant Vogtle in Georgia, the first utility-scale units built in the U.S. in decades. France follows with 61.4 GW of installed capacity, where nuclear power accounts for more than 60% of electricity generation. China, with its rapid expansion, has 56 GW of generation capacity, producing 386.1 TWh annually. The U.S. Energy Information Administration (EIA) reports that China has added more than 34 GW of nuclear generation capacity in the past decade, with at least 55 operating reactors and another two dozen under construction.
SMRs are a significant part of this growth story. These smaller, more flexible reactors can be deployed more quickly and in more locations than traditional reactors. Companies developing SMR designs highlight advanced safety features and significant cost savings, as SMRs can be fabricated in factories, transported, and assembled on-site. Eric Packer, senior vice president of Strategic Initiatives at Rexel USA, emphasizes the potential of SMRs in the data center space, noting the growing demand for high-density power solutions driven by the acceleration of artificial intelligence (AI).
GlobalData reports that more than 100 SMRs are in various stages of development worldwide, with a few already operational. Russia’s floating nuclear power plant (FNPP) Akademik Lomonosov and China’s high-temperature gas-cooled modular pebble bed (HTR-PM) reactor demonstrator are notable examples. SMR deployment, particularly in China and Russia, is expected to bring more than 10,000 MW of SMRs online in the next decade.
This resurgence in nuclear power is not just about meeting energy demands; it’s about achieving long-term growth driven by the dual goals of energy resilience and climate neutrality. As countries ramp up their focus on SMRs, lifetime extensions, and advanced nuclear technologies, the nuclear power market is poised for significant growth. This trend is likely to spark debate and challenge norms within the energy sector, as stakeholders grapple with the implications of a nuclear-powered future. The development of SMRs, in particular, could revolutionize the way nuclear power is deployed, making it more accessible and adaptable to a wider range of energy needs. The coming decade will be crucial in shaping the future of nuclear power, as countries and companies invest in and develop these advanced technologies. The energy sector must be prepared to adapt, innovate, and engage in thoughtful dialogue to navigate this evolving landscape.
