The return to nuclear is not limited to new builds. In many regions, aging reactors are being granted life extensions to sustain output and avoid capacity shortfalls. Simultaneously, Asia’s accelerating development is shifting the traditional power dynamics. China, with 56GW of installed capacity producing over 386 TWh annually, has now surpassed France in nuclear power generation, reflecting broader regional momentum.
Meanwhile, the United States remains the largest nuclear producer, operating 97GW of capacity and generating nearly 788 TWh annually. France continues to derive over 60% of its electricity from nuclear, despite falling behind China in output.
With electricity demand forecast to surge—driven in part by energy-intensive sectors like data centers—nuclear’s value as a stable baseload source is only becoming more evident. Global nuclear generation is expected to grow from 2,616 TWh in 2024 to 3,410 TWh by 2035.
At the heart of the nuclear revival is a pivot toward Small Modular Reactors (SMRs). These next-generation reactors, generally producing under 300MW, are changing the economics and logistics of nuclear development. Their smaller footprint and modular construction process allow for shorter timelines and more flexible deployment strategies, from remote areas to industrial parks.
SMRs also incorporate enhanced safety designs and can be built in centralized facilities before being transported to site—a significant shift from the bespoke nature of traditional reactors. This standardization opens the door to cost reductions and de-risks construction delays, two major barriers in past nuclear projects.
Global interest in SMRs is gaining traction, with over 100 designs currently in development across multiple markets. While Russia and China are currently operating SMRs, upcoming deployments in the U.S., U.K., and Canada signal growing Western engagement. By 2035, SMRs are projected to contribute more than 10GW to the global energy mix.
Governments are supporting this shift through a mix of financial mechanisms, including loan guarantees, tax incentives, grants, and long-term pricing agreements like Contracts for Difference. These policies aim to derisk investment and promote innovation in both new-build and hybrid energy system models where nuclear complements renewables.
