An Amazon Web Services data centre is under construction next to the Susquehanna nuclear power plant in Berwick, Pa., in January, 2025.Ted Shaffrey/The Associated Press
Canadian uranium developer NexGen Energy NXE-T has held preliminary talks with data-centre providers about securing finance for a new mine that could supply fuel for power plants needed for artificial intelligence, its CEO said on Wednesday.
Soaring demand for AI is driving a massive build-out of power-hungry data centres, in turn boosting the need for new generation capacity, including nuclear plants that will require uranium.
To meet that need, NexGen CEO Leigh Curyer said big tech firms will follow the trend set by automakers, who offered finance for battery material mine development several years ago to ensure there was enough supply for an expected boom in demand for electric vehicles.
“It’s coming. You’ve seen it with automakers. These tech companies, they’re under an obligation to ensure the hundreds of billions that they are investing in the data centers are going to be powered,” he said, speaking at a Melbourne Mining Club event.
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NexGen is developing its Rook 1 uranium project in Saskatchewan and has said it expects to finalize a funding package in the second quarter.
It secured a key mine permit this month and expects to have final government approval before the end of June for the project that it says could supply more than a fifth of global demand and which would start production in 2030.
NexGen has had initial discussions over finance with data center providers, including for long-term uranium supply, but would not include any change of control of the company, Curyer told reporters following the event.
He did not name any of the companies NexGen has been talking to.
“We are very careful to keep our powder dry until after approval,” he said. “We are looking at all (financing) options but keeping leverage to the price of uranium at the time of delivery.”
Uranium prices are trading around $88 a pound having spiked to a two-year high above $100 a pound in late January on prospects of a greater push by China and India into low-carbon nuclear power to meet their energy needs.