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Beyond Data Centers, Nuclear’s Investment Thesis Is Solid

BY | ETF Database
07/16/2026 | 17 VIEWS
Artificial intelligence and the subsequent data center boom are the primary contributors to the nuclear energy renaissance and investors’ newfound enthusiasm for nuclear equities and ETFs. Those ETFs include the ALPS Nautilus SMR, Nuclear & Technology ETF (SMRF).Fortunately for market participants evaluating ETFs such as SMRF, nuclear’s buoyant fundamental outlook is rooted in much more than just AI. For example, nuclear is a major contributor to domestic power supply — an important trait at a time when geopolitical events remind investors that energy security is national security. As the Department of Energy pointed out, nuclear generated 782 billion kilowatt-hours of energy in 2024, enough to power 72 million homes in the U.S. Nuclear is also back in the spotlight because of its status as clean energy. That could stoke interest in ETFs such as SMRF among climate-conscious market participants. “According to the Nuclear Energy Institute, U.S. nuclear power plants avoid more than 430 million metric tons of carbon dioxide emissions each year, which is the equivalent of removing roughly 95 million cars from the road each year,” noted the Energy Department.Tailwinds Abound for SMRFOf course, AI certainly bolsters the case for SMRF. The ETF, which debuted earlier this year, is undoubtedly unique. It taps various corners of the nuclear ecosystem while also featuring exposure to tech stocks — something legacy nuclear ETFs don’t do. One of the reasons AI hyperscalers are so enthusiastic about nuclear — a point that highlights long-term opportunity with SMRF — is that it’s one of most reliable energy sources available. “Nuclear power plants operated at full capacity more than 92% of the time in 2023—making it one of the most reliable energy sources in America due to its high availability,” according to the Energy Department. Nuclear energy is also cost-effective and dense. That underscores why this form of energy is crucial in the AI and national security equations. “All of the used nuclear fuel produced by the U.S. nuclear energy industry over the last 60 years could fit on a football field at a depth of less than 10 yards,” concluded the Department of Energy. For more news, information, and analysis, visit the ETF Building Blocks Content Hub. VettaFi LLC (“VettaFi”) is the index provider for SMRF, for which it receives an index licensing fee. However, SMRF are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SMRF.

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