Nuclear investment case holds beyond data-center demand

Investors have shown increased interest in nuclear-focused exchange traded funds as artificial intelligence firms and data-center operators seek large, reliable supplies of electricity. The U.S. Department of Energy reported that nuclear plants produced 782 billion kilowatt-hours of electricity in 2024, enough to power about 72 million U.S. homes.

The ALPS Nautilus SMR, Nuclear & Technology ETF (SMRF), which debuted earlier this year, combines holdings across the nuclear industry with stakes in technology companies tied to AI and data-center growth. The fund targets manufacturers, reactor operators and service providers alongside technology names that could benefit from denser, continuous power supplies.

Federal data are cited as part of the sector’s attraction. The Energy Department noted that “nuclear power plants operated at full capacity more than 92% of the time in 2023-making it one of the most reliable energy sources in America due to its high availability.” Nuclear’s high capacity factors are referenced by market participants when discussing power needs for hyperscale data centers.

The Energy Department cited figures from the Nuclear Energy Institute showing U.S. nuclear plants avoid more than 430 million metric tons of carbon dioxide emissions each year, which the department said is “the equivalent of removing roughly 95 million cars from the road each year.” The department also described the physical footprint of used nuclear fuel, saying “all of the used nuclear fuel produced by the U.S. nuclear energy industry over the last 60 years could fit on a football field at a depth of less than 10 yards.”

Index and licensing arrangements for SMRF are disclosed by the issuer. VettaFi LLC serves as the index provider for the ETF and receives an index licensing fee; VettaFi is not the issuer or sponsor of SMRF and has no obligation in the fund’s issuance, administration, marketing or trading. As investor interest has increased, market participants have looked to specialized ETFs and equities to gain exposure to nuclear suppliers, reactor operators, service firms and technology companies that rely on continuous, high-density power.