After decades of stagnation, nuclear energy has re-emerged as a central pillar of the global energy transition. It is now once again becoming a key component of the global shift in energy sources. Previously dismissed as too costly, hazardous, or politically challenging, nuclear power is being reconsidered in light of rising energy needs, increasing climate challenges, and the understanding that renewable energy alone cannot ensure consistent power supply. Nuclear generating capacity is projected to grow from about 378 gigawatts today to around 575 gigawatts by 2040, boosting nuclear energy’s portion of the global electricity mix from roughly 9 percent to 12 percent. What was once a declining technology is now set for a comeback. This revival is driven not by nostalgia but by necessity. Energy demand is increasing owing to expansion in household electrification, artificial intelligence, cryptocurrencies, and data center expansion, whereas geopolitical instability has exposed the vulnerabilities of fossil fuel-dependent energy systems. In this scenario, nuclear energy is being recognized again for its unique role which is delivering large-scale, low-carbon, and reliable baseload power that operates consistently day and night.

The rise and fall of nuclear energy have been well documented. Following the launch of the first nuclear power plant with a generating capacity of 5 MWe in 1954, nuclear power expanded rapidly, and by the 1980s, it accounted for nearly 17 percent of global electricity generation. However, major accidents, such as the Three Mile Island in 1979, Chernobyl in 1986, and Fukushima in 2011, have reshaped public perception and policy.  Due to these unfortunate incidents, investments slowed down, plants aged, and the nuclear’s share of global electricity declined to approximately 9 percent where it remained for over a decade. This resulted in increased reliance on use of renewable sources for energy generation which further overlooked the nuclear power as sustainable source of energy generation.

There are multiple interconnected factors that are now fueling the resurgence of nuclear energy. Firstly, the demand for electricity worldwide is escalating at an extraordinary rate. The increasing use of data centers, artificial intelligence, electric vehicles, and industrial electrification is putting immense pressure on power grids. The intermittency of renewables, such as solar and wind generation varying by time of day, season, and weather, has revealed a crucial gap in energy systems that nuclear power is uniquely suited to fill. Nuclear reactors offer a steady supply of baseload electricity, which is crucial for ensuring system stability.  Meta has recently struck 20-year nuclear power agreements with three different companies to provide 6.6 gigawatts of power. Secondly, climate commitments are also influencing energy strategies. Nuclear reactors produce minimal greenhouse gases during their operation, making them crucial for efforts to reduce carbon emissions. This was officially recognized at COP29 in November 2024, where 31 nations, along with major financial institutions and industry leaders, committed to tripling global nuclear capacity by 2050. Lastly, energy security has become a priority in policy-making. The conflict in Ukraine, disruptions in supply, and the volatility of fossil fuel markets highlight the dangers of depending too heavily on imported energy. Nuclear power, with its extended fuel cycles and domestically manageable supply chains, provides a strategic buffer against geopolitical disruptions.

Furthermore, the emergence of Small Modular Reactors (SMRs) is perhaps the most transformative development in this sector. SMRs promise greater flexibility, lower upfront costs, and faster deployment with capacities of up to 300 megawatts per unit which is roughly one-third the size of conventional reactors. Their modular, factory-built design reduces construction risks and allows capacity to be added incrementally. They can be deployed in regions unsuitable for large reactors, connected to weaker grids, or operated off grid. This is particularly relevant for powering data centers, which require continuous and reliable electricity and are increasingly straining existing grids. Major technology companies, such as Meta, have already signed long-term agreements with nuclear operators and invested in SMR development to secure emissions-free power for AI and cloud computing infrastructure. In rural and remote areas, micro-reactors, a subset of SMRs that produce up to 10 megawatts, offer the potential to replace diesel generators, enhance energy access, and improve resilience during emergencies. These innovations signal a shift in how nuclear power is perceived, not just as a centralized national asset but as a versatile tool for energy security across diverse contexts.

However, despite this renewed momentum, nuclear energy faces formidable challenges. First significant barrier is high capital costs. The cost of nuclear power plant can be broken down into capital cost (that include, engineering, construction, manufacturing, commissioning etc.) and operating cost (that include nuclear fuel cost, maintenance, decommissioning and waste disposal). These expenditures require massive upfront investments along with long construction timelines. The overall cost of nuclear power plant is higher than the other energy sources due to complexity and strict nature of licensing and design of nuclear plants. Moreover, delays and cost overruns in nuclear power plant projects have undermined investor confidence. The world is now dealing with the effects of underinvestment in nuclear energy sector. The average nuclear reactor is about 32 years old, and many countries face the challenge of replacing aging capacity while also decarbonizing their energy systems to reach net-zero emissions.

Waste management is another enduring challenge. Spent Nuclear Fuel is highly radioactive and must be safely isolated for longer period of time. Nuclear waste can be classified into different categories (such as High-level Waste, Low-Level Waste and Intermediate-level Waste) based on the level of radioactivity and each category needs different management strategies. Moreover, it has also been observed that SMRs, considered by some as the future of nuclear energy, can generate more radioactive waste than conventional large-scale nuclear power plants.  For effective management of radioactive waste, deep geological repositories are widely considered one of the most viable long-term solutions, however, public opposition, environmental concerns, regulatory hurdles, and high costs have slowed progress. Effective waste management requires not only technical solutions but also sustained political commitment and public trust. Nuclear security remains a critical issue. Facilities and waste sites must also be protected from accidents, sabotage, and theft. In an era of cyber threats and geopolitical tensions, ensuring the physical and digital security of nuclear infrastructure is essential to maintaining confidence in the technology.

Nevertheless, these challenges are not arguments against nuclear energy rather they are reasons to approach it with seriousness and responsibility. Therefore, it is imperative to tackle these challenges timely, otherwise the alternative where an energy transition is reliant solely on intermittent renewables and vulnerable supply chains, poses serious risks to economic stability and climate goals. Additionally, regulatory systems should be rigorous and adaptive that can help in enabling innovation without compromising safety of the public. International cooperation is also essential, particularly in developing frameworks and sharing best practices in waste management and waste security. The upcoming Nuclear Energy Summit 2026 in France offers a timely opportunity to align policy ambitions with practical implementations. As states, industry leaders, and financial institutions convene, the focus must shift from abstract commitments to concrete pathways for deployment, financing, and good governance. Above all, facilitating cooperation and technology transfer for safe, secure and assured operation of nuclear power plants.

Finally, nuclear resurgence is not about choosing nuclear energy over renewables; rather, it is about recognizing that a resilient, low-carbon energy system requires both. Nuclear power has the ability to deliver reliable, emissions-free electricity which makes it indispensable in a world facing climate urgency and energy insecurity. If managed wisely, nuclear power can help anchor the energy transition, stabilize grids, and safeguard energy security in an increasingly uncertain world. The question is no longer whether nuclear energy has a role to play, but whether governments can act decisively to ensure that this long-delayed revival succeeds.

Sidra Shaukat is a research officer at the Strategic Vision Institute (SVI), a leading Pakistani think tank focused on nuclear and strategic affairs. She works on issues related to the peaceful uses of nuclear technology and nuclear non-proliferation. Her research and commentary have addressed peaceful uses of nuclear technologies, Pakistan’s Nuclear Regulatory Authority, nuclear diplomacy, and broader geostrategic developments in South Asia, the Asia Pacific, and the Middle East across various platforms.