AI makes many things possible that seemed unimaginable just 10 years ago. Whether photos, videos, knowledge or the construction of complex relationships - the possibilities of AI are almost unlimited. However, ChatGPT and its growing number of relatives rely on large amounts of data, which means that AI data centers (as well as ordinary data centers) require unimaginable amounts of energy. Researchers have determined that a query on ChatGPT requires around ten times as much energy as a simple Google search. Although newer AI applications such as DeepSeek appear to require less energy, the sheer volume of AI queries and applications will cause the energy consumption of AI data centers to explode. According to estimates by the International Energy Agency, there were around 8,000 data centers worldwide at the end of 2023. They consumed two to three percent of global electricity production. By 2026 alone, this area of electricity consumption will grow from 460 billion kilowatt hours to a predicted 1,050 billion kilowatt hours. It can be assumed that this trend will continue as AI development progresses and mass usage increases. And chat GPT is just one of many AI developments that are running in parallel. The US investment bank Goldman Sachs estimates that data centers will consume around eight percent of total US electricity demand in 2030.
The operation of data centers, as well as most other power guzzlers in daily life, requires stable, non-fluctuating or only slightly fluctuating energy, which is why solar and wind power plants are not very suitable for this. Nuclear power is stable and therefore base-load capable, which is why more and more tech companies will rely on base-load capable electricity from nuclear power plants.
Many (emerging) nuclear power nations such as China, India, Japan, the UK, France and the USA are working on the recommissioning, lifetime extension or new construction of nuclear reactors and many other nations have returned to nuclear energy or want to have their first reactor on their own soil. However, uranium is required as the basic "fuel" to operate such reactors, regardless of whether they are conventional large-scale power plants or SMRs. However, the uranium supply has been lagging behind demand for years and can only be significantly expanded slowly, as there are hardly any established mines and the commissioning of new mines can take many years. Many mines were closed at times of low uranium prices and cannot be restarted within days. New mines even need a lead time of over 10 years in some cases for approval and construction.
Cumulatively, there will be an estimated shortfall of 500 million pounds of triuranium octoxide (U3O8) by 2030. For 2025, a supply of around 150 million pounds of U3O8 can be assumed, which will not even come close to meeting the demand for 190 million pounds of U3O8.
This blatant undersupply of uranium opens up excellent opportunities for interested investors to participate in the uranium market. Some interesting investment opportunities can be found in this report.
