Nuclear power is experiencing a massive revival across Europe, with the regulatory environment shifting decisively in its favor thanks to surging electricity demand from the AI and data center boom, climate goals, volatile global energy markets and the urgent need for structural energy independence.
It’s a big wishlist, and nuclear may be the fastest way to realize it.
Massive power demand by the tech giants and hyperscalers is exceeding traditional grid capacities in Europe and the United States. AI data centers require huge amounts of baseload energy, with operators increasingly turning to nuclear as the only reliable, zero-carbon energy source that can operate 24/7 without the intermittency issues of solar and wind.
Europe’s nuclear energy renaissance is similarly driving a surge in dealmaking in the sector.
According to market data published by White & Case and Mergermarket, a total of 25 transactions were closed in 2025, up from 17 in 2024, with total deal value clocking in at $1.5 billion, marking the highest level in seven years.
“Energy security in Europe is no longer a peripheral concern. Decarbonisation requirements are tightening and the surge in AI?driven power demand, particularly from data centres, is creating a supply gap that requires reliable, low?carbon and high?density energy, which nuclear power is uniquely positioned to provide,” Ximena Vásquez-Maignan, project finance lawyer at international law firm, White & Case White & Case LLP, told Enlit World.
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And, the momentum is showing no sign of slowing down, “Already, 2026 is looking similarly strong. Deal volume is following a comparable trajectory to 2025, with ten deals announced by June 8. But the market has recorded a remarkable spike in deal value, with those ten totalling $3 billion, already doubling 2025’s full-year output and eclipsing all annual totals for the last several years,” said White & Case.
Not surprisingly, money is beginning to flow into the once-shunned sector.
The European Commission is investing €330 million into the nuclear sector through the 2026–2027 Euratom Research and Training Programme. Interestingly, the lion’s share (€222 Million) will be dedicated to taking nuclear fusion from the laboratory to commercial electricity production. The EC hopes to achieve this by deploying funding via the European Innovation Council (EIC) to derisk private startups and investing heavily in developing highly specialized engineering talent. The remainder of that budget will go to boost the safety of existing nuclear power plants, as well as improve long-term asset operation and radiation protection.
Europe is also betting heavily on Small Modular Reactors (SMRs) and Micro-Modular Reactors (MMRs). These units are cheaper, faster to construct, and can be built adjacent to industrial or data center hubs. SMR development and deployment is now backed by major EU policies, including the Net-Zero Industry Act, alongside research funding through the Euratom programme.
Europe’s total SMR capacity is projected to reach up to 53 GW by 2050, nearly half the EU’s current nuclear capacity of 112 GW.
Brussels has rolled out the European Industrial Alliance on Small Modular Reactors, aiming to unify over 350 stakeholders, including developers, end-users, researchers and policymakers to accelerate the demonstration and commercial deployment of SMRs by 2030. The Alliance has endorsed a five-year roadmap outlining targeted actions to revitalize the nuclear supply chain, simplify regulatory frameworks, promote research skills and unlock public and private investment.
The Alliance’s governing board has already selected a shortlist of promising SMR projects across Europe to spearhead development, including technologies like Rolls-Royce SMR, EDF’s Nuward and the European BWRX-300. And it will be a list worth keeping an eye on as this rollout gains momentum.
Meanwhile, European regulators are now rueing the continent’s past nuclear phase-outs as strategic blunders, with more than 10 EU Member States now including nuclear power in their updated energy and climate plans. European governments are rapidly reversing historic nuclear bans and fast-tracking new regulatory frameworks to meet surging energy demand.
In the UK, a newly formed Nuclear Regulatory Taskforce is overhauling the regulatory framework to speed up reactor design approvals and streamline planning processes. North Wales has been selected as the site for the UK’s first SMR, with development backed by a £2.5 billion investment. Following its selection by Great British Energy (Nuclear) in 2025 as the preferred technology partner, Rolls-Royce SMR has cemented significant international contracts, including multibillion-pound agreements to build SMRs in Sweden. The UK government has also accepted applications to begin the Generic Design Assessment (GDA) process for advanced reactors such as TerraPower’s Natrium technology, ensuring early integration of UK safety and security assessments.
Belgium, too, has officially abandoned its planned nuclear phase-out. The federal parliament voted to repeal the 2003 phase-out law, suspending the decommissioning of its remaining reactors and extending the operational lives of Doel 4 and Tihange 3 to 2035 while aiming for an additional 10 years of operation beyond that. The Belgian government has also initiated negotiations for a full takeover of the country’s seven nuclear reactors from French energy giant Engie. This move is designed to suspend decommissioning and secure control of the country’s energy supplies.
Meanwhile, the Italian government is advancing legislation and draft framework laws to bring back nuclear energy despite historic referendums that previously banned the technology, while both the Swiss Senate and House of Representatives have voted to lift the country’s ban on constructing new nuclear power stations.
By Alex Kimani for Oilprice.com
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