An analysis indicates that advancements in AI technology are driving a surge in U.S. electricity demand, with nuclear energy—particularly small modular reactors (SMRs)—gaining attention.

The analysis notes that the widespread adoption of energy-intensive artificial intelligence (AI) technologies is driving sustained growth in U.S. electricity demand, a trend that is expected to continue over the coming decades.Reuters reported that U.S. electricity consumption reached a record high for the second consecutive year in 2025 and is expected to rise further in 2026 and 2027, driven primarily by AI data centers and electrification. Goldman Sachs A report by the group suggests that the bottleneck facing AI development is electricity, not capital. To meet this demand, Wall Street experts are increasingly bullish on nuclear energy, particularly small modular reactors (SMRs).Bank of America notes that SMRs offer advantages over traditional large-scale nuclear power plants, including lower costs, higher safety, modularity, a smaller footprint, and lower carbon emissions. Currently, NuScale Power and Oklo are two publicly traded companies focused on SMRs, adopting different strategies: one involves partnering with utility companies, while the other supplies power directly to AI data centers.