Nuclear expansion could unlock a $3.1 trillion investment opportunity by 2060, but fuel supply and geopolitical risks will shape the pace of growth, Wood Mackenzie said in a Tuesday note.
Growing electricity demand from artificial intelligence, electrification and energy security is accelerating nuclear investment, with over 70 countries evaluating new commercial reactors.
Wood Mackenzie expects global installed nuclear capacity to more than double by 2060 under its base-case outlook as governments seek reliable 24/7 electricity.
The firm said utilities will rely on reactor life extensions and plant restarts through 2035 to meet near-term data center demand before conventional and advanced reactors drive broader market expansion.
Standardized reactor designs, factory-built components and simpler licensing processes should support faster deployment after 2035, although commercial scaling remains uncertain, Wood Mackenzie said.
Private funding from artificial intelligence hyperscalers is helping expand the sector, while governments are increasing support for domestic nuclear fuel production and tightening export controls to strengthen energy security.
Wood Mackenzie said the current fuel market appears adequately supplied, but rising reactor deployment could strain uranium mining, conversion, enrichment and fuel fabrication as demand strengthens over coming decades.
The note said geopolitical tensions, trade restrictions and concentrated production could limit fuel access even where capacity exists, making supply security as important as physical availability.
Wood Mackenzie expects several parts of the nuclear fuel chain to tighten during the 2030s because new mining and processing projects require long development timelines before adding meaningful capacity.
Emerging fuels, including high-assay low-enriched uranium, tristructural isotropic fuel, thorium-based fuels, molten salt fuels and accident-tolerant fuels, are broadening reactor development but require dedicated manufacturing networks.
Governments are treating advanced nuclear fuels as strategic assets to reduce reliance on existing suppliers, according to Wood Mackenzie.