The insurance sector’s role in the new nuclear age

Clifford Blayney looks at the global nuclear revival, fuelled not just by net-zero targets but also rising energy demands.

Published on August 22, 2025

By Clifford Blayney

Head of Power and Offshore Sustainable Energy

Originally published in Insurance Post, August 2025

5-minute read

When UK Energy Secretary Ed Miliband talked about a ‘nuclear renaissance’ earlier this year, it emphasised how nuclear power is increasingly being seen as the best solution to meeting net-zero emissions targets and a necessary complement to renewable power.

With governments pushing for reduced energy imports, greater energy security, increased electrification of public transport systems and onshoring of manufacturing, demand for power generation is growing.

But the biggest driver by far for nuclear expansion is the massive increase in power demand from data centres, to service growth in artificial intelligence.

Big tech is investing heavily in nuclear. Microsoft has signed agreements to restart one reactor, to co-locate a data centre beside another reactor, and to develop new small modular reactors (SMRs).

Oracle is building a data centre powered by three SMRs, while Meta has secured capacity from several SMRs to be built in California, and an agreement to re-licence a traditional reactor.

With data centres operating around the clock and continuous demand for AI solutions, nuclear provides a low-carbon, stable base-load to complement intermittent renewable power, to run our “full-time economy on emissions-free power”.

The nuclear renaissance

The nuclear renaissance will look different to the nuclear we see today. Gigawatt-scale, bespoke power plants will continue to play their role, with around 70 new nuclear reactors under construction globally, with around 100 more planned, the majority of which are in Asia.

In addition, the UK has confirmed £14.2B in funding for the new Sizewell C conventional nuclear reactor and a £4.5B loan has been agreed to finance completion of two long-delayed reactors at the Hinkley Point C site.

However, the real growth opportunities lie within the development and growth of Small Modular Reactor (SMR) technology.

While the upfront costs and construction time for traditional nuclear can be prohibitive, the modular design of SMRs promises large-scale manufacturing to a set design, reduced costs, and much shorter construction times.

In the UK, Great British Energy has concluded tendering for an SMR construction contract, with Rolls Royce named the winning bidder.

The company’s 470MWe design is currently progressing through the regulatory approval process, with the Government expected to select its preferred SMR model later in 2025. If things stay on track, that puts the first UK deployment somewhere in the early 2030s.

Progress is faster in other parts of the world. Canada is building the world’s first commercial reactor at Darlington, which is due to be online by 2028.

In the US and parts of Europe, projects are targeting delivery windows between 2028 and 2031.

What’s clear is that while SMRs are still emerging tech, they’re no longer theoretical – they’re being built, financed and, in some places, already delivering power.

However, global licensing agreements for SMRs will need to be reached between regulatory bodies in different countries. And with the likely development of multiple SMR models, cross-border regulation may prove challenging.

The other key component to the nuclear renaissance will be in the form of nuclear fusion.

Often dubbed the ‘holy grail’ of energy, fusion technology promises limitless clean power without the contamination and waste disposal risks associated with fission reactors.

But while prototype fusion reactors exist, scientists haven’t yet generated electrical power with them. That breakthrough could be only five years away – or as long as 30 years.

Supporting nuclear development

The nuclear industry’s safety record has improved immensely in recent decades, with highly stringent engineering standards and strong regulatory oversight now making it the second safest form of power after solar and the cleanest form of energy production.

The insurance sector will play a central role in supporting nuclear expansion, ensuring the next generation of nuclear projects can access the risk transfer solutions they need to attract investment and satisfy regulatory requirements.

Nuclear liability coverage for SMRs is yet to be determined by international conventions, and therefore the limits and requirements provided by Insurers are still to be realised.

What is clear however is that with the nuclear renaissance taking various forms, Insurers will have to be adaptable, creative and supportive.

Now is the time for the commercial insurance market to lead with purpose.

By collaborating with governments, nuclear operators and sector experts, insurers can innovate new products, expand capacity and can cement their place at the heart of a safe, resilient and sustainable future.