Why I'm Betting on Nuclear: My Thesis on DNN & CCJ

Image: Siezwell Nuclear Plant

When I started buying into Denison Mines (DNN) and Cameco (CCJ) a year ago, I was taking what many would call a contrarian stance. Nuclear energy was still saddled with old baggage — Chernobyl, Fukushima — and investor interest was lukewarm at best. But what I saw then, and believe even more strongly now, is that nuclear is one of the few scalable answers to the world’s rapidly growing energy demands.

This is not just a “green energy” story. It’s an infrastructure and digital economy story. And I believe my investments are sitting right at the front edge of an inflection point.

Why Nuclear, Why Now

Governments Are Re-Rating the Sector

The policy winds have shifted. In September 2025, the US and UK signed a £40 billion nuclear energy deal, including £12 billion earmarked for the north east of England. That isn’t token funding — that’s government signalling nuclear as part of its long-term energy backbone. Private equity is following suit, with deals like an £80 million investment in a micro modular reactor at London Gateway port.

When governments commit billions and de-risk regulatory hurdles, capital markets notice. Nuclear is moving from “politically toxic” to “politically necessary.” In the U.S, sweeping tax credits are now flowing into the sector, while new models are emerging reducing project risk and more importantly for investors, making nuclear projects bankable in a way that hasn't been for decades.

China and South Korea have shown that nuclear can be built on time and on budget by standardising designs and building multiple reactors per site. If Western markets could begin to adopt similar models, that could unlock even greater flows of institutional capital into the sector.

Data Centres Will Be the Demand Catalyst

The real kicker, in my view, is AI and data centre growth. Electricity demand from data centres is set to soar:

• Deloitte estimates U.S. data centre demand could 5x by 2035 (~176 GW).

• The IEA expects global data centre demand to more than double by 2030.

• Nuclear could realistically provide ~10% of this incremental demand — a huge figure when you consider base-load requirements.

Source: Economist

The capital markets have begun to notice as nuclear energy's new backers aren't just governments - it's Big Tech propelled by data centres demand for energy. Microsoft is restarting reactors, Meta is paying to extend them, Amazon and Google are funding SMR's. Add in Barclays forecast of $1 trillion SMR market by 2050, and you begin to see why uranium suppliers like DNN and CCJ are positioned for structural upside. This isn't theory anymore - it's happening.

Supply Tightness = Price Support

On the supply side, uranium has been under-invested for years. Prices have more than doubled since 2020, but that’s still early days relative to the scale of future demand. This is where my core positions — DNN and CCJ — come in.

My Core Positions

Denison Mines (DNN)

DNN is my leveraged bet. It’s not the safest name in the sector — it’s still a developer with heavy capex needs — but that’s exactly why I own it. Projects like Wheeler River in Saskatchewan could become highly profitable if uranium prices stay elevated. Denison also holds physical uranium inventory, giving it optionality.

In short: if uranium enters a sustained bull market, DNN offers asymmetric upside. High risk, but potentially very high reward.

Cameco (CCJ)

Cameco is my stabiliser. It’s one of the largest uranium producers globally, with established operations and long-term contracts. CCJ provides the steady exposure I need while DNN gives me the torque.

Since we love giving a name to an investment strategy, I guess I have adopted the barbell approach — pairing a speculative developer with a proven producer. One name captures the upside, the other manages the risk.

Risks I Acknowledge

• Regulation & permitting: timelines can stretch.

• Execution risk: nuclear megaprojects have a history of overruns.

• Commodity volatility: uranium prices are thinly traded and can swing hard.

• Public perception: waste disposal and “not in my backyard” resistance remain. (Sizewell C as example)
  

These are real. But they are also the reasons nuclear is still under-priced. If it were risk-free, the rerating would already have happened.

Conclusion: My Conviction Stands

When I bought into DNN and CCJ a year ago, my thesis was simple: demand is coming, supply is constrained, and sentiment is wrong. A year later, I’m more confident than ever. Governments are pouring billions into nuclear, tech companies are waking up to its potential, and uranium prices are firming.

I believe this is still the early stage of a long-term revaluation. DNN gives me the speculative torque; CCJ gives me the stability. Together, they position me for what I see as one of the most overlooked opportunities in the market today.

For me, this isn’t just an investment. It’s a conviction call: nuclear is back, and the market hasn’t caught up yet.