Uranium stocks rallied following news of Google's partnership with Constellation Energy to secure nuclear power for AI data center operations in Australia.

Australian uranium mining companies recorded their strongest trading session in weeks on Wednesday following Alphabet's Google announcement of a 20-year power purchase agreement with Constellation Energy. The deal, signed Tuesday, secures 890 megawatts of electricity—roughly a quarter of Constellation's total contracted capacity—drawn from multiple nuclear power plants that would be upgraded to generate additional output from existing reactors.

The market response was immediate and broad-based. Boss Energy rose 4.6%, marking its largest intraday gain in over a week, while Deep Yellow advanced 4.6%, its best session since September 3. Paladin Energy gained 2.5%, its biggest movement in more than two weeks.

The broader catalyst reflects a global data centre boom straining power and water infrastructure. Hyperscalers and major operators are increasingly prioritizing sustainability, which has intensified focus on nuclear energy as a dependable, low-carbon power source to meet rising demand.

Luke Winchester, portfolio manager at Merewether Capital, described the Google-Constellation deal as providing a significant boost to the entire uranium sector. He noted that uranium investors have long argued nuclear should serve as the primary energy source for power-intensive data centres—and having validation from one of the world's largest hyperscalers lends substantial legitimacy to that thesis.