Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

NUCLEAR POWER GETS A GLOW-UP IN THE AGE OF AI

For decades, nuclear energy sat on the sidelines of the global energy conversation, too slow, too expensive, too politically fraught. But in 2025, the world's biggest tech companies began chasing clean, reliable power to feed their insatiable AI data centers.

Morgan Stanley calls it the "Nuclear Renaissance," saying global nuclear capacity will reach 586.8 GW by 2050, a 53% jump from last year's forecast. That growth, analysts say, will require $2.2 trillion in capital investment, and it's already reshaping markets.

But this isn't just about reactors and uranium. It's about the companies poised to ride the wave.

In the U.S., Talen Energy TLN.O has become a poster child for the new nuclear economy. Its deal with Amazon.com AMZN.O, providing behind-the-meter nuclear power to a co-located data center, was priced at a premium of nearly $35/MWh.

"This solution provides a time-to-power benefit compared to a regular grid connection," said Morgan Stanley analyst David Arcaro. Microsoft MSFT.O followed suit, signing a contract with Constellation Energy CEG.O to restart the Three Mile Island plant. That deal? Estimated at $100/MWh, nearly $50 above market rates.

Across the Pacific, South Korea is emerging as a global exporter, with Doosan Enerbility 034020.KS and Samsung C&T securing an $18 billion reactor deal in the Czech Republic. "Korea could win up to 39% of the global nuclear export market," says Morgan Stanley's Young Suk Shin.

China is advancing fast, activating a thorium molten salt reactor and launching the world’s first commercial Gen-IV reactor. CGN Power 003816.SZ and CGN Mining 1164.HK are central to its push.

India is scaling up with a 100GW target by 2047. NTPC plans to invest $62 billion, while L&T and BHEL BHEL.NS ramp up SMR and component capabilities.

Even in slower-adopting regions like ASEAN and Latin America, momentum is building. Singapore and Thailand are exploring SMRs, while Brazil's Eletrobras has de-risked its nuclear exposure through a government agreement. Argentina and Mexico are considering life extensions for existing reactors.

As Morgan Stanley analysts note, nuclear is no longer just about energy, it's a geopolitical asset. "We believe Korea and, over the longer term, Japan, offer alternatives in this multipolar world."

"This isn't just a sector rebound," the analysts conclude. "It's a structural re-rating."

(Rashika Singh)

*****

EARLIER ON LIVE MARKETS:PRADER-WILLI DRUG SPARKS WALL STREET INTEREST IN MULTI-BILLION DOLLAR MARKET, LEERINK SAYS CLICK HERE

WALL STREET MIXED AFTER HOT PPI REPORT CLICK HERE

US STOCK FUTURES PRESSURED BY HOTTER-THAN-EXPECTED PPI CLICK HERE

WHEN GOOD NEWS ISN'T GREAT NEWS FOR LONDON STOCKS CLICK HERE

EARNINGS GROWTH AND FED CUTS - AN UNUSUAL MIX CLICK HERE

UKRAINE PEACE COULD BE A DOUBLE-EDGED SWORD FOR THE EURO CLICK HERE

STOXX UP, VOLATILITY DOWN CLICK HERE

EUROPE BEFORE THE BELL, CATCHING BREATH CLICK HERE

MORNING BID: BITCOIN JOINS THE RISK-ON PARTY CLICK HERE