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Morgan Stanley sees $2.2 trillion of investment in new nuclear power through 2050, a more than 40% increase over its projection last year as government support and demand from the tech sector has grown. The investment bank sees the U.S. adding 150 gigawatts of nuclear power by the middle of century, according to a note published this month. That would more than double the installed capacity in the U.S., though it is well below President Donald Trump’s goal of adding an additional 300 gigawatts. “The nuclear renaissance has already made significant progress,” Morgan Stanley analysts told clients on Aug. 12. “Over the past year, global policy support – especially in the United States – has strengthened significantly. Hyperscalers are increasingly focused on securing clean, reliable 24/7 energy, highlighting the strategic importance of nuclear power.” Morgan Stanley recommends playing the trend in the U.S. through the independent power producers Talen Energy and Vistra Corp. , reactor designer GE Vernova , and the utility Public Service Enterprise Group . The U.S. trails China when it comes to building new nuclear plants, but momentum is growing as Alphabet , Amazon , Meta and Microsoft have announced investments in nuclear power over the past year. China has about 37 gigawatts of nuclear power under construction while the U.S. is not building any plants right now, according to Morgan Stanley. Trump has sought to jump start nuclear construction through a series of executive orders in May that aim to slash regulation and accelerate approvals. The federal tax credits for nuclear power also remain in place after the passage of the One Big Beautiful Bill Act. Vistra is expected to strike a data center deal at its Comanche Peak nuclear plant in Texas, while Public Service Enterprise Group will likely announce a deal at one of its New Jersey plants, according to Morgan Stanley. Talen Energy has contracted out all its nuclear capacity to Amazon already, but the company could announced data center deals with its gas assets, according to the bank. The U.S. has a large pipeline of 17 small modular reactors under development, though these plants are not expected to come online until the 2030s at the earliest if at all, according to the bank. The developers of SMRs believe they will make nuclear plants faster and more affordable to build. Morgan Stanley recommends GE Vernova as a way to play SMRs. GE Vernova is aiming to build its BWRX-300 in Ontario, Canada and in Tennessee. GE Vernova and Talen are up about 88% this year, Vistra has gained about 43%, and Public Service Enterprise Group is flat.
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