The nuclear power renaissance is gaining momentum worldwide in 2026, with China, South Korea, and other Asian nations leading the way in new construction. A new McKinsey analysis identifies AI data centers, electric mobility, industrial electrification, climate goals, and energy security as key drivers. The IAEA currently reports 417 reactors in operation and 77 units under construction. China alone is building 37 of these reactors, while South Korea is achieving comparatively short project timelines through standardized construction programs. However, global expansion depends on financing, skilled labor, permits, and stable supply chains. Consequently, delays drive up costs, tie up capital, and can push back the completion of planned reactors by years.
Nuclear power renaissance moves new construction to Asia
China is dominating current new construction, while Western countries are primarily operating existing plants for longer. According to the OECD-NEA, China accounts for more than 33 gigawatts of the currently emerging capacity. The country also relies on recurring reactor designs, large series and closely linked state-owned companies. As a result, individual Chinese projects reach the grid connection after around six years.
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South Korea also demonstrates how standardization reduces construction times and costs. There, operators utilize proven designs, reliable suppliers, and experienced project teams. Consequently, the Korean-led construction of the Barakah nuclear power plant in the United Arab Emirates followed a four-unit program. According to McKinsey, this repetitive construction process reduced costs by approximately 40 percent from the first unit to the fourth.
Construction time is a more critical factor than fuel costs
One-off projects, retroactive design changes, and lengthy interruptions are slowing the nuclear power renaissance in Europe and the USA. Capital expenditure accounts for around 60 percent of the levelized cost of electricity for new plants. As a result, long construction periods drive up costs associated with financing, personnel, and site management. McKinsey estimates that construction costs in France and the USA are $50 to $60 per megawatt-hour higher than in South Korea.
The OECD-NEA recently estimated global capital expenditure for new nuclear power at around $30 billion annually. However, to meet their ambitious expansion targets, OECD countries alone would need to mobilize an average of $68 billion per year. Under a scenario involving a tripling of capacity, that requirement would rise to $143 billion. Private investors therefore demand reliable revenue models, clear liability rules, and state guarantees during the construction phase.
Small reactors won’t solve every bottleneck
Small modular reactors (SMRs) are designed to spread investment costs across multiple expansion phases. Factory production and standardized modules can also simplify construction processes. However, more than 90 concepts remain in the development or early implementation stage. Canada began construction of a 300-megawatt SMR at the Darlington site in April 2026. Consequently, the benefits of serial production will only materialize once operators actually order and build multiple identical units.
At the same time, the nuclear renaissance requires significantly larger fuel and component supply chains. Many modern reactors require HALEU, yet Western suppliers currently provide only limited quantities. The US Department of Energy is therefore investing $2.7 billion in new enrichment capacity and up to $800 million in downstream processing. Bottlenecks involving reactor pressure vessels, steam generators, and specialized pumps also remain a possibility. Ultimately, the global rollout will hinge not on political announcements, but on serial production, financing, and industrial implementation.
Author: Blackout News
Sources: IAEA (Stand: 15.07.26) – McKinsey Global Institute (30.06.26) – US-Energieministerium (Stand: 15.07.26) – World Nuclear News (14.07.26)