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Tech giants Microsoft (MSFT - Free Report), Google's parent Alphabet (GOOGL - Free Report), Amazon (AMZN - Free Report), and Meta (META - Free Report) have reported massive investments in artificial intelligence and cloud computing in their latest earnings reports.

The AI boom has driven a surge in demand for data center capacity to handle AI workloads and store the vast amounts of data they require. Data centers are energy-intensive, and AI applications consume even more energy than traditional computing.

Many tech giants have pledged to use renewable energy to power their data centers, driven by sustainability goals. And they are increasingly exploring nuclear energy for their power needs.

Governments around the world have also recognized that nuclear energy might be one of their key options in achieving their net-zero emissions targets.

Uranium, mainly used in nuclear power plants, is one of the most carbon-free ways to generate electricity. However, nuclear energy currently accounts for only about 10% of global electricity generation and about 20% in developed countries, including the US.

While demand for uranium continues to rise, supply faces many challenges. Expanding the uranium supply will take a long time.

President Biden yesterday signed a bill banning the import of Russian-enriched uranium, which includes some waivers allowing imports until 2028 if no alternative source is found. The bill allocates about $2.7 billion to build up domestic uranium supplies.

To learn about the Global X Uranium ETF (URA - Free Report), Sprott Uranium Miners ETF (URNM - Free Report), and VanEck Uranium+Nuclear Energy ETF (NLR - Free Report), please watch the short video above.

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