Is nuclear power back on the energy agenda?

White & Case has partnered with the Financial Times on the publication of three articles, which explore key energy transition issues. This article has been reproduced with permission from the Financial Times.

Climate goals, geopolitics and technology are reviving the nuclear industry. But nuclear will only become a mainstream power source if it can address its image problem and attract the right funding.

Nuclear power is now part of the energy transition conversation. Commercial pressures such as high costs and long delivery timelines for the latest programmes in OECD countries, as well as devastating accidents, have slowed down the development of nuclear power since it began to show early promise in the mid-20th century. But now it is back, thanks in part to the 2023 COP28 summit where momentum began to build around the nuclear opportunity.¹

There are three main reasons for nuclear power's resurgence: the energy transition, the need for energy security and artificial intelligence (AI).

The three forces reshaping the energy mix

1. The energy transition

Many businesses and governments have net zero targets, and their commitment to renewables such as wind, solar, tidal and hydropower remains strong. Despite concerns about how net zero might affect the country's economic growth, the majority of UK businesses (64 per cent) are committed to UK net zero targets.²

But reliability issues and storage challenges mean renewable power sources are not always appropriate, or enough to meet demand. So some businesses and energy experts are beginning to see nuclear as a low-emission, reliable source that can complement other renewables and make the best use of land.

"Renewables are great, but they are intermittent," says Ximena Vásquez-Maignan, Counsel at law firm White & Case. "In Europe, we don't have the vast open spaces of the US and Canada, and nuclear is a more efficient use of land."

2. Energy security

In 2022, when Russia invaded Ukraine, many countries were reliant on Russian gas. But when the war pushed up prices and disrupted supply chains they shifted towards a homegrown approach. This put nuclear back on the agenda because reactors can operate for up to 80 years, reducing the need to rely on other nations during the operational period.

Andrew McDougall KC, Partner at White & Case, explains that nuclear gives countries the option to maintain more control over their energy supply. "Take the example of Germany versus Finland," says McDougall. "Finland has a lot of nuclear power and doesn't rely on others for energy, whether it be coal or gas. Germany, on the other hand, was suddenly stuck when war broke out because it was dependent on gas."

3. AI

Demand for data centres is growing because of the rise of AI: globally, demand for data centre power is set to grow at a compound annual growth rate of 16 per cent between 2023 and 2028, according to Boston Consulting Group.³ In the UK, the number of data centres is set to increase by a fifth, according to Barbour ABI.⁴

All of this new capacity needs power, and White & Case Partner Peter Berg suggests that power could be nuclear: "Data centres are a perfect place for nuclear to slot in, because it provides reliable baseload power 24 hours a day – it's not intermittent." In fact, technology giant Microsoft recently signed a 20-year deal to purchase power from the Three Mile Island energy plant as it seeks to power its data centres.⁵

There are barriers to nuclear’s revival

Demand for nuclear power might be growing, but the industry will have to prove it is safe, can attract the right funding and will be carefully regulated.

"Communication is key," says Vásquez-Maignan. "People are not aware of how much nuclear safety has evolved. In 70 years of operation, there have only been two accidents with offsite damage, and they will never happen again because the technology used in Chernobyl no longer exists and there has been a constant improvement of the safety culture based on lessons learned."

This means the nuclear industry has a job to do to improve its overall image to communities, investors and governments, who may associate it with the previous high-profile accidents.

But that's not the only barrier – financing nuclear is a significant challenge.

White & Case Partner Martin Menski says that large nuclear power plants or small modular reactors need to be financed with public and private sources if they are to succeed. "There has to be a marriage of public and private capital," he says. "Attracting private capital, both on the equity and debt side, will be a challenge without some form of government or quasi-government support given the nature of the bankability issues for nuclear power projects. This is especially true for projects deploying new technologies such as small modular reactors, and given the construction and liability risks involved. Financing will likely require backing from export credit agencies, national development finance agencies or multilaterals."

Finally, regulation is a challenge for all types of energy production, but even more so for nuclear. Regulation is essential to ensure that future projects operate safely. This is why, according to McDougall, it is "hyper, hyper regulated".

"Nuclear is such a special area, with such special regulation," he explains. "If you're doing a first-of-a-kind design, it's never been through a process before."

The care that is taken to regulate nuclear may help improve its image if the public is made more aware of the process, but the time it takes to share this information could slow progress.

The road ahead for nuclear

"Nuclear is not the solution," says Berg. "It is part of the solution." As countries adjust their energy strategies, nuclear can have a role. But only if nuclear proponents can address its safety record, find innovative ways to finance it and regulate it in a safe and timely way.

_{1 www.energy.gov/articles/cop28-countries-launch-declaration-triple-nuclear-energy-capacity-2050-recognizing-key
2 www.bsigroup.com/en-GB/insights-and-media/media-centre/press-releases/2025/july/businesses-remain-committed-to-net-zero-and-welcome-growing-policy-certainty-but-progress-slows
3 www.bcg.com/publications/2025/breaking-barriers-data-center-growth#:~:text=The%20average%20size%20of%20a,of%20campuses%20above%20200%20MW
4 www.bbc.co.uk/news/articles/clyr9nx0jrzo
5 www.bbc.co.uk/news/articles/cx25v2d7zexo}

This article was first published in Financial Times.