Italy has officially reopened its nuclear sector after nearly four decades, approving a legislative framework that prioritizes small modular reactors (SMRs) and advanced modular reactors (AMRs) to meet surging electricity demands from industrial decarbonization and artificial intelligence infrastructure. The parliamentary approval marks a regulatory turning point, though actual power generation remains years away. The government now has 12 months to develop implementing decrees that will govern licensing, siting, supply chains, and waste management.

This development is not isolated. Across Europe and beyond, nuclear energy is experiencing a renaissance driven by a single, urgent reality: artificial intelligence and data centers require massive amounts of reliable, low-carbon electricity. Investors and policymakers are increasingly viewing nuclear power, particularly smaller modular designs, as the infrastructure backbone that AI deployment demands.

Why Is Italy Returning to Nuclear Energy Now?

Italy's nuclear shutdown in 1987 left the country heavily dependent on energy imports and vulnerable to price volatility. The new strategy targets a nuclear share of at least 11% in the energy mix by 2050, which government estimates suggest could reduce decarbonization costs by approximately 17 billion euros over that period. The National Integrated Energy and Climate Plan envisions an eventual nuclear share reaching 22%.

The timing aligns with Europe's broader energy crisis and the computational demands of artificial intelligence. Unlike traditional large nuclear plants that take decades to build, SMRs offer a modular manufacturing approach. Components are produced in controlled industrial settings before installation, potentially accelerating deployment and reducing on-site construction complexity.

Italy is not starting from scratch. In 2026, the Italian National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA) launched a three-year national nuclear research program funded by the Ministry of Environment and Energy Security. This initiative specifically includes SMR and AMR development, fusion technologies, and specialized workforce training.

What Timeline Should We Expect for Italian Nuclear Power?

Minister of Environment and Energy Security Gilberto Pichetto Fratin stated that the first reactors could enter operation around 2034 to 2035. That timeline depends on regulatory development, technology selection, site identification, financing, and project execution. Parliamentary approval should be interpreted as the opening of a new regulatory phase rather than the immediate start of construction.

The European Commission considers SMRs capable of simultaneously contributing to decarbonization, industrial competitiveness, and security of supply, although large-scale commercial deployment still needs to demonstrate competitive costs, schedules, and manufacturing capabilities. EDF recently announced plans to develop 10 SMRs across the European Union by 2035 using NUWARD technology, with one unit potentially located in Italy involving local companies such as Edison, Saipem, and Webuild. The EDF concept targets approximately 400 megawatts per reactor, with capacity to generate electricity and supply heat for industrial applications.

How Is the Global Investment Community Responding?

Beyond Europe, nuclear energy is attracting significant capital attention. Venture capitalist and investor Kevin O'Leary recently shifted his investment strategy away from direct artificial intelligence technology stocks toward energy infrastructure, identifying electricity production and uranium as primary focus areas for the next 36 months.

"To me, the trade is now the energy trade," O'Leary stated, emphasizing that small modular reactors represent the cleanest and cheapest source of electricity for powering computing infrastructure.

Kevin O'Leary, Venture Capitalist and Investor

O'Leary's thesis reflects a broader market recognition: technology giants are prioritizing energy as an independent asset class. He cited a 3 billion dollar deal in Finland involving Alphabet Inc.'s Google to purchase a power contract from a local utility, noting the transaction had nothing to do with AI data centers but rather represented tech companies acquiring long-term leases on reliable power.

How Are International Partnerships Accelerating Nuclear Development?

South Korea is deepening its nuclear partnership with the United States through multiple channels. Korea Hydro and Nuclear Power (KHNP), the majority state-owned utility, signed a memorandum of understanding with Southern Nuclear to expand technical exchange programs, compare best practices, and conduct workshops focused on plant operation, maintenance, reliability, and engineering.

"This agreement is expected to help our engineers broaden their global perspective and provide an opportunity for our engineering system to advance further," said Young-seung Kim, head of KHNP's Engineering Division.

Young-seung Kim, Head of Engineering Division, Korea Hydro and Nuclear Power

Additionally, NuScale Power announced it is in discussions with the South Korean government regarding potential investments in the U.S. nuclear sector. These developments tie directly into a broader 350 billion dollar investment pledge South Korea made to the United States. Of that total, 200 billion dollars is earmarked for sectors including nuclear power, artificial intelligence, and semiconductors, aimed at securing economic ties and reducing tariffs.

"Last week, we met with the Korean government, which reaffirmed that a significant piece of the total investment will be energy projects, including small modular reactors in the United States," said John Hopkins, NuScale CEO.

John Hopkins, Chief Executive Officer, NuScale Power

Steps to Understanding the Nuclear-AI Energy Connection

• Recognize the Power Demand Surge: Artificial intelligence systems, particularly large language models and data centers, consume enormous quantities of electricity. A single training run for a major AI model can cost millions of dollars in electricity alone, making reliable power generation a critical business concern for tech companies.
• Understand SMR Advantages: Small modular reactors offer standardized, factory-built components that can be transported and installed at multiple sites, reducing construction timelines and costs compared to traditional large nuclear plants that require decades of on-site building.
• Track Investment Flows: Monitor how venture capital, government pledges, and corporate partnerships are shifting toward nuclear infrastructure. When major investors like Kevin O'Leary pivot from tech stocks to uranium and energy commodities, it signals market confidence in nuclear's role in powering AI infrastructure.
• Follow Regulatory Timelines: Italy's 12-month window to develop implementing decrees and its 2034-2035 target for first reactors provide a concrete benchmark for how quickly nuclear frameworks can transition from policy to operational power generation.

The convergence of Italy's nuclear revival, South Korea's strategic investments, and investor enthusiasm for uranium and energy infrastructure reflects a fundamental shift in how the world views power generation. Artificial intelligence is not simply a software story; it is increasingly an energy story. As computational demands grow, the industries powering those computations are turning to nuclear energy as the most reliable, scalable, and low-carbon option available.

For Italy specifically, the next 12 months will be critical. The country must transform a strategic decision on nuclear energy into the technical and regulatory framework required to determine which technologies can be built, under what conditions, and what role they will play within the future energy system. Success would position Italy as a model for how mature democracies can rapidly modernize their energy infrastructure to meet 21st-century computational demands.