Europe’s nuclear revival accelerates as AI power demand rises

Europe’s nuclear sector is regaining political and financial momentum as AI data centers strain power grids and governments seek reliable, low-carbon electricity. Nuclear is being positioned as a baseload alternative to intermittent renewables, with climate targets and energy security concerns accelerating regulatory shifts across the region.

Nuclear-sector dealmaking reached a seven-year high in 2025, with 25 transactions worth $1.5 billion, up from 17 in 2024. By June 8, 2026, ten announced deals totaled $3 billion, already doubling 2025’s full-year output and surpassing recent annual totals, according to White & Case and Mergermarket data.

The European Commission is directing €330 million into nuclear through the 2026-2027 Euratom Research and Training Programme, including €222 Million for fusion commercialization. Brussels is also backing Small Modular Reactors through the Net-Zero Industry Act and the European Industrial Alliance on Small Modular Reactors, with SMR capacity projected to reach up to 53 GW by 2050.

Several governments are reversing or softening previous phase-outs. The UK is creating a faster regulatory path and supporting its first SMR in North Wales with a £2.5 billion investment, while Belgium has repealed its 2003 phase-out law and extended Doel 4 and Tihange 3 to 2035. Italy is advancing nuclear legislation, and Swiss lawmakers have voted to lift the ban on new plants.