Uranium ETFs rally amid plans to revive nuclear reactor in Microsoft agreement
By Christine Idzelis
Constellation Energy said Friday it plans to restart a nuclear reactor at Three Mile Island
Shares of exchange-traded funds that focus on companies related to the nuclear industry were leaping Friday after Constellation Energy Corp. announced it was restarting a nuclear reactor at Three Mile Island under a power-purchase agreement with Microsoft Corp.
The Global X Uranium ETF URA was up 4.1% in late afternoon trading, while the Sprott Uranium Miners ETF URNM climbed 3.8% and the VanEck Uranium & Nuclear ETF NLR jumped 4.6%, FactSet data show, at last check.
Constellation said Friday it signed a 20-year agreement with Microsoft to help power the company’s data centers. As part of the agreement, Constellation (CEG) plans to revive a Three Mile Island nuclear reactor in Pennsylvania adjacent to the one that was shut down in 1979 as the result of an accident. The long-term operation of the reactor being restarted was not affected by the partial meltdown, according to the announcement.
“This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative,” Bobby Hollis, vice president of energy at Microsoft, said in the announcement. “Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grid’s capacity and reliability needs.”
As Big Tech companies invest in artificial intelligence, data centers used for AI will need more power. Shares of Microsoft (MSFT) were down 0.6% on Friday afternoon, while Constellation shares surged around 21%, according to FactSet data, at last check.
Related: Why this real-estate-related corner of the stock market may benefit from AI
The Dow Jones Industrial Average DJIA was up 0.2% in late afternoon trading Friday, while the S&P 500 SPX traded about flat and the Nasdaq Composite COMP slipped 0.1%, FactSet data show, at last check.
-Christine Idzelis
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09-20-24 1601ET
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