The price of %Uranium, the main fuel for nuclear reactors, has surged to a record high as demand from %ArtificialIntelligence (A.I.) data centres accelerates.
Prices for enriched uranium have risen to $190 U.S. per separative work unit, the commodity’s standard measure, which is up 239% from $56 U.S. three years ago.
A resurgence of interest in nuclear power has come as governments and companies source carbon-free power to service major industrial facilities and communities.
Uranium prices are also marching upwards as technology companies such as %Microsoft (NASDAQ: $MSFT) and %Amazon (NASDAQ: $AMZN) turn to nuclear reactors to run their power-intensive A.I. data centres.
However, uranium prices have been steadily increasing since Russia invaded Ukraine nearly three years ago.
Russia is a major player in the global uranium market and U.S. sanctions and a Russian export ban have helped push prices upwards in recent years.
Nearly 30% of U.S. enriched uranium imports in 2023 came from Russia, according to analysts at German bank Berenberg.
In addition to Russia, the countries that are leaders in the production of uranium for use in nuclear reactors are France, the U.S., and Canada.
Most uranium is sold under long-term contracts rather than on the open market. Prices for delivery could rise because of a potential squeeze in the availability of uranium, say analysts.
Demand for enriched uranium to fuel nuclear reactors is only expected to rise in coming years as more A.I. data centres come online and as governments adopt cleaner energy sources.
