AI Demand and Policy Lift U.S. Nuclear, SMRF Draws Investors
AI demand and federal policy are driving U.S. nuclear expansion, and the ALPS Nautilus SMR ETF (SMRF), launched in February, has drawn investor interest as DOE projects about 300 GW by 2050.
AI demand and federal policy have renewed interest in U.S. nuclear power. The ALPS Nautilus SMR Nuclear & Technology ETF (SMRF), launched in February, has attracted investor attention. The U.S. Department of Energy projects domestic nuclear capacity could grow from about 100 gigawatts in 2023 to roughly 300 gigawatts by 2050 if advanced technologies are deployed.
Large-scale artificial intelligence applications and hyperscale data centers are increasing electricity demand. Companies operating large data centers seek reliable, low-carbon power sources. Nuclear plants supply continuous baseload electricity and have lower operational carbon emissions than fossil-fuel generation.
The DOE’s Pathways to Commercial Liftoff report, cited by the Nuclear Energy Institute, outlines the potential threefold increase if advanced nuclear technologies are commercialized. Industry participants and utilities are assessing whether advanced designs can scale to meet long-term power needs for computing infrastructure and industry.
Federal action this year included a Fusion Science and Technology Roadmap issued by the White House in October and the establishment of an Office of Fusion in November. Executive measures have been taken to support fusion development.
A McKinsey estimate places the capital cost to add about 300 gigawatts of nuclear generation in the United States between $105 billion and $170 billion. The International Energy Agency forecasts an additional roughly 3,500 terawatt-hours of global electricity consumption over the next three years.
SMRF is structured to track companies involved in advanced nuclear technologies. VettaFi LLC provides the index for the ETF and receives an index licensing fee; VettaFi is not involved in SMRF’s issuance, administration or marketing.
Designs such as small modular reactors are intended to be built in factories, shorten on-site construction time and fit smaller grids or industrial sites. Deployment timelines and commercial viability vary by design and project, and public and private investors continue to evaluate technical, regulatory and financing factors.
