European data center expansion is triggering renewed interest in nuclear power generation to support grid electrification and meet AI workload demands.
Europe's accelerating data centre buildout could strengthen the case for new nuclear capacity as technology companies seek dependable, low-carbon electricity to power AI infrastructure, according to J.P. Morgan analysts. European data centre electricity consumption is projected to rise from approximately 70 TWh currently to roughly 115 TWh by 2030, according to European Commission estimates cited in the analysis. AI data centres require large amounts of continuous power, making nuclear generation a potential complement to intermittent renewable sources.
J.P. Morgan forecasts an additional 89 TWh of annual European data centre power demand by 2030 compared with 2023, with Iberia and the Nordics accounting for approximately 45% of the increase. Europe's announced data centre pipeline stood at 66.1 GW at the end of 2025, compared with 10.8 GW of live capacity.
Technology companies are already demonstrating a willingness to pay premiums for long-term nuclear power. Google recently agreed to a 22-year power purchase agreement with Fortum covering nuclear generation in Finland, alongside an agreement exploring potential new capacity. The contract carries an estimated premium of roughly 60% to forward electricity prices. Similar nuclear power agreements have been signed by Microsoft, Meta, Amazon, and Google in the United States.
Small modular reactors could play an increasingly significant role as demand grows. Their smaller scale could allow capacity to be added closer to large industrial and data centre users, reducing pressure on electricity grids. Europe currently has no operating commercial SMRs, with the first projects targeted for the early 2030s.
The policy environment has shifted notably, with several European countries extending reactor lives or backing new projects following years of nuclear retrenchment. The European Commission estimates €241 billion of investment will be required through 2050 for new large reactors and lifetime extensions. France and the Nordics appear particularly exposed to rising data centre demand given their electricity surpluses and relatively competitive power prices. Growing competition for available electricity could push regional prices higher and strengthen the economic case for additional nuclear generation.