Global nuclear capacity could more than double to 860 gigawatts by 2050, from 398 GW currently, Morgan Stanley said on Aug. 28.
“AI data centers and the electrification of different industries are creating a surge in power demand that outpaces global supply, and this is prompting companies, policymakers and investors to take another look at nuclear power,” it said.
Morgan Stanley Research estimates 586 GW in new global nuclear capacity by 2050, or 53% more than its initial forecast last year, when analysts reported that a “renaissance” was coming for the industry. They are now estimating that potential investments in the nuclear value chain through 2050 will increase to $2.2 trillion, up from the $1.5 trillion initially forecast.
That stronger momentum is likely to benefit several sectors, including uranium mining, nuclear power generation, and equipment and plants, the investment firm said.
“The nuclear renaissance has been building for some time already – with 22 nations pledging to triple nuclear capacity by 2050 at the COP28 summit in December 2023, plant life extensions in Europe, a strong pipeline in China, and Japan continuing to restart capacity,” says Tim Chan, Morgan Stanley’s Head of Asia Sustainability Research. “The dual imperatives of decarbonization and energy security are making the nuclear renaissance a truly global investment theme.”
While natural gas is currently the main alternative to meet AI’s energy demand, technology companies are willing to pay a premium to transition to nuclear energy, it said.
“We believe natural gas will be the primary near-term solution for powering AI data centers due to its speed to market, reliability and flexibility, while nuclear power represents a longer-term clean energy alternative that is likely to gradually increase in importance,” says Stephen Byrd, Morgan Stanley's Global Head of Sustainability Research. “Gas and nuclear are likely to play complementary roles.”
Total global nuclear capacity was at 398 GW in July 2025, according to the World Nuclear Association. That capacity could more than double to 860 GW by 2050, led by Asia, according to Morgan Stanley Research.
China currently has the most nuclear power plants under construction, planned or proposed. "Their aggressive push to supply data centers solely with green power should turn the country into the global leader in nuclear capacity by 2030," the investment firm said.
The U.S. is currently the world's largest producer of nuclear power. "However, there has been no new large-scale project in the country in the last 15 years. President Donald Trump signed in May executive orders aiming to quadruple nuclear capacity in the country by 2050," it noted.
In Europe, nuclear energy growth has been largely coming from countries in the central and Eastern parts of the continent, while Western nations, such as France, Spain and Sweden, only expect to have modest expansion.
