Europe Reclaims Nuclear Power to Fuel AI Expansion

The sector is seeing a massive surge in capital and dealmaking. According to White & Case and Mergermarket, 25 transactions closed in 2025 with a total value of $1.5 billion. The momentum has accelerated into 2026, with ten deals announced by June 8 alone totaling $3 billion—double the entire output of the previous year. Ximena Vásquez-Maignan of White & Case notes that the supply gap created by AI-driven energy consumption has made nuclear an essential commodity rather than a peripheral concern.

Public investment is mirroring this private appetite. The European Commission has earmarked €330 million for the 2026–2027 Euratom programme, with €222 million specifically targeting the transition of nuclear fusion to commercial production. Simultaneously, Brussels is championing Small Modular Reactors (SMRs) through the European Industrial Alliance, aiming for a capacity of 53 GW by 2050. This push includes the selection of flagship projects like Rolls-Royce SMR, EDF's Nuward, and the European BWRX-300.

Governments across the continent are actively dismantling the legislative barriers of the past. Belgium has repealed its 2003 phase-out law, extending the life of its reactors, while the UK has established a Nuclear Regulatory Taskforce to fast-track design approvals. Italy and Switzerland are also moving to reverse historic bans on new construction. With more than 10 EU Member States now integrating nuclear into their climate plans, the continent is betting that these high-density reactors will provide the structural independence necessary to survive an increasingly volatile global energy market.