According to the CEO of NexGen, data centers might support uranium initiatives
NexGen Energy has held preliminary discussions with data centre providers about financing a new uranium mine that could help power nuclear plants supporting artificial intelligence infrastructure, according to chief executive Leigh Curyer.
Rising demand for AI services is driving rapid expansion of power-intensive data centres worldwide, increasing the need for new electricity generation capacity, including nuclear energy that depends on steady uranium supply. Speaking at a Melbourne Mining Club event, Curyer said large technology firms are expected to follow a path similar to automakers, which previously helped finance battery mineral projects to secure electric vehicle supply chains.
He said major tech companies investing heavily in data centre infrastructure have a strong incentive to ensure long-term energy availability and may support upstream fuel supply through financing arrangements tied to future uranium deliveries.
The company is developing the Rook 1 uranium project in Saskatchewan and expects to finalise a broader funding package in the second quarter. NexGen recently secured a key mine permit and anticipates receiving final government approval by the end of June. The project is targeted to begin production around 2030 and, at full scale, could account for more than one-fifth of global uranium demand, according to company estimates.
Curyer said early-stage financing conversations with data centre operators include structures linked to long-term uranium supply agreements, but would not involve any change in corporate control. He declined to name the counterparties involved and said the company plans to keep its options open until all approvals are in place, while maintaining leverage to uranium prices at the time of delivery.
Uranium prices are currently trading near $88 per pound after rising above $100 per pound in late January, supported by expectations of expanded nuclear power programmes in countries including China and India as part of low-carbon energy strategies.
