Trump's Fossil Fuel Push May Satisfy AI's Soaring Energy Demand — But What About Nuclear?

President-elect Donald Trump ran on a promise to “drill, baby, drill” in his second term in office, reflecting his continued support of the fossil fuel industry. His stance on nuclear energy, however, is murky.

What Happened: Following his 2016 election win, Trump called for efforts to strengthen U.S. nuclear energy. During his first term, his administration advanced several nuclear microreactor projects, according to the Department of Energy.

However, he may have flip-flopped on the issue. In an interview with podcaster Joe Rogan ahead of the Nov. 5 election, Trump seemingly highlighted the dangers of pushing nuclear energy, according to the Huffington Post.

"They get too big and too complex and too expensive," Trump said. "There's a little danger to nuclear—you know, we had some really bad nuclear."

He then named several nuclear projects that have stalled in recent years.

Robert F. Kennedy Jr., an ally of Trump and a possible Trump appointee, has an anti-nuclear track record, according to Utility Dive.

See Also: Expert Finds Trump’s Tax Proposal Drains Money From 95% Of Households And Funnels It To The Top 5%

Why it Matters: A future widespread adoption of nuclear energy necessitates significant investments in data centers. In turn, data centers require substantially higher amounts of electricity.

Artificial intelligence is projected to use between 8% and 25% of all U.S. electricity by 2030.

Facts show that President Joe Biden‘s administration produced more oil than Trump’s previous administration. He also prioritized nuclear as a clean energy source. The one-term president positioned it as a bridge energy source that provides reliable, carbon-free electricity.

The Market Reacts: Regardless of whether he centers nuclear energy as a key part of his domestic agenda, Trump’s support of deregulation would likely serve as a tailwind.

Shares of Vistra Corp VST have traded up over 13% since Trump’s election win. Constellation Energy Corp CE has fared worse, trading down nearly 3%.

Small reactor companies have seen even more pronounced gains. Shares of Nuscale Power Corp SMR are up over 20%. Meanwhile, Nano Nuclear Energy Inc NNE has shot up over 26%.

The Trump-Nuclear trade has seemingly died down on Monday and Tuesday.

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