Global Nuclear Power Surge: IEA Predicts Record Output by 2025
Nuclear energy is on track to hit a record high in 2025, signalling a resurgence for the clean, reliable power source, according to a new report by the International Energy Agency (IEA).
But this resurgence isn’t without its challenges. Delayed projects, rising costs, and tricky financing could hold back its full potential in an increasingly electrified world.
The report, The Path to a New Era for Nuclear Energy, highlights global momentum for nuclear power, driven by new technology and growing interest from the private sector.
More than 70 gigawatts of nuclear capacity are under construction—marking one of the biggest expansions in three decades.
Much of this growth is fuelled by innovations like Small Modular Reactors (SMRs) and countries prioritizing cleaner, more reliable energy sources.
“It’s clear that the strong comeback for nuclear energy we predicted several years ago is well underway,” said Fatih Birol, IEA’s Executive Director.
“Nuclear is set to reach record electricity output by 2025. However, timely project delivery, diverse supply chains, and sufficient financing are critical to sustaining this progress.”
Why Nuclear Power is Gaining Momentum
Today, nuclear energy generates nearly 10% of the world’s electricity, making it the second-largest source of low-emission power after hydropower.
As demand for electricity surges—driven by artificial intelligence, electric vehicles, and data centers—nuclear’s reliability and ability to provide consistent energy make it a standout option.
But the nuclear landscape is changing. While many existing reactors in advanced economies are nearing the end of their lifespans, new growth is happening elsewhere.
China is leading the charge and is on track to surpass the U.S. and Europe in nuclear capacity by 2030.
Meanwhile, Russia’s dominance in uranium enrichment—accounting for 40% of global capacity—has raised concerns about overly concentrated supply chains.
“Highly concentrated markets for nuclear technologies and uranium production pose significant risks,” Birol said. “Diversifying supply chains is essential to securing nuclear’s future.”
The Role of Technology and Investment
At the forefront of nuclear’s revival are Small Modular Reactors (SMRs)—compact, more affordable reactors that can be built faster and used flexibly. With the right backing, SMRs could contribute 10% of global nuclear capacity by 2040, the IEA estimates.
Companies like Amazon are already exploring nuclear solutions. The tech giant has partnered on SMR development to further its sustainable energy goals.
“Tackling climate change requires both speed and scale,” said Kara Hurst, Amazon’s Chief Sustainability Officer.
Still, achieving this vision will require significant investment. Annual spending on nuclear projects will need to double to $120 billion by 2030 to meet growth targets. Public-private collaboration is also key.
“We need clear policies, faster permitting, and international regulatory alignment to build investor confidence,” said Nomi Ahmad, CEO of GE Vernova’s Financial Services.
A Strategic Moment for Nuclear Energy
Despite the hurdles, the IEA report is optimistic about the road ahead. Governments have a crucial role to play in setting a clear vision, creating stable regulations, and encouraging private-sector investment.
With the right mix of policy and innovation, nuclear energy could unlock a new era of clean, secure power.
As the world grapples with the dual challenges of energy security and climate change, nuclear energy stands ready to deliver—provided the global community can overcome the obstacles that lie ahead.
