Canada is launching an ambitious nuclear expansion that could reshape the country's energy landscape, with plans to construct up to 10 new reactors over the next 15 years as artificial intelligence data centers demand unprecedented amounts of reliable electricity. The federal government's new nuclear strategy, announced on June 22, 2026, represents a dramatic shift in how policymakers view atomic energy, moving it from a sector in slow decline to a cornerstone of national infrastructure and economic growth.

Why Is Nuclear Power Suddenly Central to AI's Future?

The catalyst for this reversal is straightforward: artificial intelligence is consuming staggering amounts of electricity. U.S. data center power demand is projected to climb from roughly 176 terawatt-hours to as much as 580 terawatt-hours by 2028, according to industry projections. That represents a more than threefold increase in just a few years. Unlike solar and wind farms, which depend on weather conditions, data centers running AI models need constant, uninterrupted power 24 hours a day. Nuclear plants, which generate electricity around the clock regardless of weather, have become the obvious answer to this problem.

Energy Minister Tim Hodgson framed the challenge in stark terms, stating that "if our goal is to double our grid and build a low-carbon economy in less than 25 years, there is no credible plan to do that without nuclear energy and the clean, reliable baseload power it provides". The recognition is spreading across governments and technology companies alike: AI has fundamentally changed the long-term electricity demand outlook, and nuclear is increasingly viewed as essential to meeting it.

What Does Canada's Nuclear Strategy Actually Include?

Canada's plan spans both traditional large reactors and a new generation of smaller, modular designs. The strategy calls for construction to start on two new large-scale reactors by 2035, with five more planned or under development by 2040. At least one reactor must be under construction outside Ontario by 2035, signaling a push to distribute nuclear capacity across the country. The plan also targets a Canadian-made microreactor to be finalized by 2035 and deployed to a remote community by the late 2030s.

A key component is the Darlington facility in Ontario, where a small modular reactor capable of producing up to 300 megawatts per unit will be built, marking the first such reactor in the G7 group of wealthy nations. Saskatchewan is also exploring small nuclear reactors for deployment by the mid-2030s. Beyond domestic construction, Canada aims to export its Candu reactor technology to at least four new international markets by 2040, cementing the country's role as a nuclear partner to other nations.

How Will This Expansion Affect Jobs and the Economy?

The employment impact could be substantial. Canada's nuclear sector currently employs roughly 90,000 people, and the government projects this could double to 180,000 or more jobs over the coming decades. These positions would span mining, reactor construction, enrichment facilities, and ongoing operations. The strategy also emphasizes rebuilding a secure, domestic uranium supply chain, a shift driven by geopolitical concerns about dependence on foreign suppliers.

Officials from Natural Resources Canada indicated that construction of the reactors outlined in the strategy could cost more than $100 billion. The government has pointed to the Canadian Infrastructure Bank and the Canada Growth Fund as potential funding sources, though the strategy does not specify how costs will be divided between federal and provincial governments or private investors.

What's Driving the Global Nuclear Renaissance?

Canada's move reflects a broader reversal in how the world views nuclear power. For decades, the sector was in retreat following high-profile accidents, cost overruns, and a global shift toward natural gas and renewables. Uranium prices languished, and the supply chains that support nuclear energy atrophied. That story has reversed with striking speed.

Several forces converged to spark this change. Climate policy reframed nuclear as one of the few sources of reliable, carbon-free baseload power. Energy-security concerns reminded governments of the risks of depending on geopolitical rivals for fuel. And the practical limits of wind and solar, which cannot guarantee steady electricity for heavy industry and digital infrastructure, pushed policymakers back toward the atom. By the mid-2020s, what had been a tentative recovery was being described as a nuclear renaissance.

How Tight Is the Uranium Supply Market?

The renewed enthusiasm for nuclear power runs into a critical constraint: uranium supply. Years of low prices and underinvestment left the uranium market structurally tight, and analysts widely expect demand to outstrip supply later this decade as reactors are extended, restarted, and built. This dynamic helped drive a dramatic price move in early 2026, when spot uranium briefly surpassed $100 per pound for the first time in two years before settling into the high-$80s, still far above the levels that prevailed for most of the prior decade.

Layered on top of the price story is a geopolitical one. Western nations have grown acutely aware that much of the world's uranium conversion and enrichment capacity sits outside their control, leaving fuel supplies exposed to foreign leverage. That has elevated domestic uranium production and rebuilding a secure, allied nuclear fuel supply chain into a matter of national security and explicit policy support. The push to re-shore the nuclear fuel cycle, from the mine to the enrichment facility, has become one of the defining themes of the sector.

Steps to Understanding the Nuclear-AI Connection

• Understand the Power Gap: AI data centers require 580 terawatt-hours of electricity by 2028, up from 176 terawatt-hours today, creating a demand shock that renewable sources alone cannot reliably meet without nuclear baseload power.
• Recognize the Supply Constraint: Uranium markets are structurally tight after decades of underinvestment, with prices surging to the high-$80s per pound in 2026 as buyers move to secure physical supply for future reactors.
• Track the Geopolitical Dimension: Western nations are prioritizing domestic uranium production and enrichment capacity as a national security imperative, shifting away from dependence on foreign suppliers like Russia.
• Monitor Technology Deployment: Both traditional large reactors and small modular reactors are advancing simultaneously, with Canada targeting the first G7 small modular reactor at Darlington and microreactors for remote communities by the late 2030s.

What Are the Key Takeaways From This Shift?

The nuclear sector is experiencing a fundamental reorientation driven by AI's insatiable appetite for electricity. Canada's $100 billion strategy is not an isolated move but part of a global pattern in which governments and technology companies are racing to secure nuclear capacity. The sector now spans blue-chip uranium producers, small modular reactor developers, and speculative technology companies, each offering different risk-and-reward profiles under one overarching theme: nuclear is back.

For investors, policymakers, and energy planners, the message is clear. The decades-long retreat from nuclear power has reversed. AI has accelerated that reversal from a slow recovery into what Energy Minister Hodgson called a "new civilian nuclear renaissance." Whether Canada and other nations can execute on these ambitious plans, secure sufficient uranium supply, and manage the geopolitical dimensions of a re-shored nuclear fuel cycle will shape global energy security for the next 25 years.