US clean technology firms are seeing renewed investor interest as AI drives a surge in demand for carbon-free electricity to power data centers.

Nuclear and geothermal energy companies, long considered niche, are now attracting attention from tech giants and investors for their ability to provide round-the-clock power.

Oklo, a US-based nuclear startup, has seen its shares rise nearly 275% this year, while Bloom Energy, which provides fuel cells, is up 66%.

Almost a quarter of US climate tech VC funding in the first half of 2025 went to nuclear startups, with TerraPower closing a US$650 million deal, according to BNEF.

Geothermal firms face regulatory and construction hurdles but are benefiting from faster permitting and tax incentives under current federal policies.

During the first half of 2025, more than US$22 billion in clean-energy investments were canceled or scaled back, about 17% of projects announced since 2022, according to E2.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Nuclear power faces a timing mismatch with AI’s urgent energy demands

While AI data centers need power immediately, nuclear projects historically struggle with massive delays and cost overruns that could leave tech companies waiting years for promised capacity.

The most recent U.S. nuclear plants, Georgia’s Vogtle Units 3 and 4, experienced a $17 billion cost overrun and took over a decade to complete1. This contrasts sharply with utility-scale solar projects, which can be deployed in about a year and a half on average1.

Nuclear power naturally suits data center needs because about two-thirds of electricity demand is base-load power, which nuclear can provide consistently around the clock2. But the infrastructure reality means that even with government support, these projects “will take significant time and capital to get permitted and deployed at scale,” as noted in the original article.

The disconnect between immediate AI power demands and nuclear construction timelines could force data center developers to rely on interim solutions, potentially including the natural gas turbines that are currently experiencing shortages.

2️⃣ Geothermal’s scaling challenges persist despite political tailwinds

Even with favorable policies, geothermal faces fundamental cost and technical barriers that limit its ability to quickly capitalize on AI demand.

Geothermal drilling costs are significantly higher than conventional energy projects, potentially requiring a 25% increase in electricity prices to make Enhanced Geothermal Systems financially viable3. Current geothermal electricity costs range from 10 cents to $1 per kilowatt-hour, which exceeds coal pricing4.

Recent Oklo developments