JPMorgan Warns US Nuclear Energy Boom Faces Cost, Supply Challenges

Globally, 31 countries operate 416 nuclear reactors with a combined installed net capacity of 376 GW, and Bangladesh is preparing test runs of two Rooppur WWER-1200 reactors in December 2025 with commercial operation expected in 2026 and 2027. In the U.S., surging electricity demand from AI data centers has helped spur a Bloomberg Intelligence forecast of a $350 billion spending boom that could boost reactor output about 63% by mid-century. That optimism has driven rallies in nuclear-related stocks — Oklo shares have risen over 500% this year and the MVIS Global Uranium & Nuclear Energy index is up more than 70% versus a 14% gain in the S&P 500. JPMorgan bankers, including Rama Variankaval, warned the market may be overexcited, saying supply constraints, high upfront costs, long construction timelines and regulatory and labor hurdles mean new nuclear capacity will take time and the industry “is not ready for prime time.” The push to expand U.S. nuclear capacity is being supported politically by Trump administration executive orders and state-level feasibility studies, but practical and supply-chain constraints are likely to temper near-term deployment and leave immediate needs to natural gas, renewables and battery or carbon-capture solutions.