An exciting development has emerged in the realm of nuclear energy, shedding light on a pivotal breakthrough for China.

On January 10th, it was reported that China has made significant strides in uranium exploration, discovering a large uranium deposit in the Jingchuan area of the Ordos BasinThis is poised to greatly enhance China's uranium reserves.

Notably, uranium serves as the critical fuel in nuclear power generationIn the context of rapid advancements in artificial intelligence (AI), the energy demands for data centers have surgedAccording to Goldman Sachs, power needs for these data centers are expected to increase by 160% by 2030. Consequently, nuclear energy has become the darling of the market, with tech giants such as Microsoft, Google, and Oracle turning their attention to this energy source

Research institutions point out that driven by AI, a global resurgence in nuclear power is becoming inevitable.

In the U.Sstock market, nuclear power shares are showing vigorous growthCompanies such as Constellation, Vistra, NuScale, and Oklo have seen their stock prices soar by 91%, 258%, 445%, and 112% in 2024, with 2025 having further increases of 9%, 17%, 10%, and 23%. In the Chinese A-share market, nuclear power stocks have also demonstrated impressive returns since early 2024, with companies like Waltech gaining over 200%, Guangzhi Technology up by 146%, and Niuwai shares increasing by 80%. On January 10th, various nuclear stocks rose against market trends, with Xizi Clean Energy and Haikong Refrigeration hitting their upper limit, while Xibu Materials and Tianqiao Hoisting rose over 7%.

A Major Breakthrough

Reports indicate that the discovery of a large uranium mine in the Jingchuan area of the Ordos Basin will significantly increase China's uranium resource reserves, thereby enhancing the security of its uranium supply.

On January 10th, the Ministry of Natural Resources of the China Geological Survey announced a major breakthrough in uranium exploration, achieved in collaboration with China Petroleum’s Changqing Oilfield branch and the China Nuclear Industry Geological Bureau

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The resource capacity has been classified as massive.

The uranium deposit in the Jingchuan area of the Ordos Basin represents a significant milestone in China’s new round of mineral exploration efforts and marks the global first discovery of a major uranium deposit within a distribution area of wind-deposited sandstone.

China has substantial deposits comprised of wind-deposited sandstone, found not only in the Ordos Basin, with an area of approximately 200,000 square kilometers, but also widely in other oil and gas basins, including the Tarim and Junggar basinsThe discovery of the Jingchuan uranium deposit heralds a new chapter in uranium exploration and will significantly boost the country's uranium reserves, thus enhancing its uranium security level.

Prosperity for Nuclear Power Sector

With the continuous increase in global energy demands and the declining availability of fossil fuels, nuclear energy has emerged as a clean and efficient alternative

Analysts assert that the rise in China's uranium reserves is undoubtedly a positive development for the nuclear power sector.

Uranium ore is a mineral resource characterized by significant radioactivity, primarily due to its uranium contentAmong the various isotopes of uranium, U-235 and U-238 are particularly notable for their nuclear propertiesU-235 is essential for nuclear power generation, while the differing half-lives and radioactive intensities of these isotopes grant uranium ore an irreplaceable strategic position in the energy sectorIt is noted that natural uranium, extracted directly from ore, consists of a mix of U-238, U-235, and trace amounts of U-234. Notably, U-238 constitutes about 99.27% while U-235 accounts for 0.714%. The average concentration of uranium in the Earth's crust is approximately 2.5 parts per million, surpassing that of elements like tungsten, mercury, gold, and silver.

Looking at the traditional utility landscape, the trend of nuclear power revival is becoming evident globally

The IAEA projects that by 2035, installed nuclear power capacity worldwide will reach 543 GW, corresponding to a compound annual growth rate of 2.9% from 2024 to 2035. Future needs are expected to accelerate further, positioning nuclear power growth as a fundamental segment of this trendFurthermore, CICC notes that the energy demands from AI data centers will be a major driver for future demand expansion.

CICC states that fundamentally, nuclear power presents one of the best solutions to the energy challenges posed by AIRecently, tech giants such as Microsoft have begun to secure partnerships with nuclear suppliers, stimulating prices in the natural uranium market as well as uranium mining stocksHowever, concerns over nuclear safety, changing approval environments, and competition from alternative energy solutions still pose uncertainties in its development trajectory

The accelerated engagement of tech giants in the nuclear field represents a critical catalyst for future demand, transitioning the nuclear energy potential driven by AI from possibility to reality.

The increasing investments by tech giants in nuclear power mark one of the most captivating developments in the global nuclear industry since 2024. To cater to the surging needs for AI and cloud computing, tech leaders such as Microsoft, Google, Amazon, and Meta are increasingly focusing on nuclear energy.

In September 2024, Constellation Energy signed the largest power purchase agreement ever with Microsoft, wherein the latter will acquire all the electricity produced by the Three Mile Island nuclear power plant over the next two decades

This agreement is significant as it marks the first instance in which a single user has claimed all the electrical output of an individual commercial nuclear plant in U.Shistory, following the plant's closure after the most serious accident in the history of American commercial nuclear power.

In October 2024, Alphabet Inc., the parent company of Google, announced plans to purchase nuclear energy generated by a small modular reactor developed by Kairos PowerAlso during that month, Amazon announced a substantial investment in nuclear energy, signing three related agreements and committing over $500 million to the development of small modular reactors.

Furthermore, reports from late December revealed a significant partnership by Sam Altman's nuclear energy company, Oklo, which signed a preliminary non-binding agreement with U.S

data center giant Switch on December 18, 2024. This agreement symbolizes a pivotal collaboration in the clean energy field, wherein Oklo plans to develop, construct, and operate an aggregate capacity of up to 12 GW of Aurora micro nuclear power stations across the U.Sover the next twenty years, aiming to meet the soaring energy demands of Switch's data centers and facilitate their transition to sustainable energy solutions.

On January 2 of this year, Constellation Energy, the largest nuclear operator in the U.S., announced obtaining a significant contract worth over $1 billion with the U.SGeneral Services Administration (GSA). This included an $840 million deal to provide power over a decade and upgrade energy efficiency at GSA facilities, marking the largest nuclear power procurement agreement in U.S

federal government history, further heralding the nuclear power revival.

Moreover, reports indicate that in the quest for clean energy to combat climate change, several nuclear companies are developing "micro-reactors" the size of shipping containers, aiming to compete with batteries and establish a new zero-carbon energy source.

Recently, CITIC Securities highlighted that nuclear fusion has the potential to become the ultimate energy source in civilian power generationWith growing enthusiasm in the sector and substantial investments from various nations, the pace of commercialization of fusion reactors is expected to surpass market expectations