Key Takeaways:
Urenco USA is investing billions to boost enrichment capacity by nearly 50%, betting surging AI-driven electricity demand will revive the nation's nuclear fleet.
Urenco USA, the only commercial-scale producer of enriched uranium in the United States, said Tuesday it will expand its New Mexico facility by 2.1 million separative work units — a nearly 50% increase — backed by signed, long-term contracts with U.S. utility customers. The multi-billion-dollar investment will add 24 cascades of gas centrifuges at the Eunice site, with initial production starting in 2032 and full installation through 2036.
"The expansion reinforces our commitment to a resilient U.S. nuclear fuel supply chain focused on meeting the long-term needs of our customers as well as supporting U.S. energy security," Boris Schucht, chief executive officer of Urenco Global, said in a statement.
The facility currently has 4.3 million SWU of annual capacity, covering about one-third of U.S. enrichment demand. An ongoing project to add 700,000 SWU will be completed in 2027, and Urenco plans to refurbish existing capacity starting that year. With all expansions, installed capacity will exceed 7 million SWU over the next decade. The company's global order book reached a record €21.3 billion ($24.78 billion) at the end of 2025, up 14% from 2024.
The expansion comes as the U.S. seeks to reduce its reliance on Russian enriched uranium, which still supplies up to 25% of domestic demand. A ban on Russian imports, signed by former President Joe Biden, takes full effect in 2028. Urenco's facility will produce low-enriched uranium enriched up to 5% for existing reactors, and can also produce LEU+ enriched to 10% and feedstock for high-assay low-enriched uranium enriched to 20%, which next-generation reactors will require.
The AI-Driven Demand Case
Nuclear power generates nearly 20% of U.S. electricity, and projections for data center electricity consumption — driven by artificial intelligence workloads — have utilities and technology companies seeking round-the-clock carbon-free power. Small modular reactors and other advanced designs planned for the 2030s will require HALEU fuel, creating a downstream market for Urenco's expanded output.
The company did not win any of the $2.7 billion in enrichment contracts the U.S. Energy Department awarded in January to competitors including Centrus Energy Corp., General Matter and Orano. Still, Urenco's customer-backed investment — supported by signed long-term contracts — signals confidence that utility demand will absorb the additional capacity. The expansion will support 300 to 600 construction jobs and 70 permanent operations roles at the site.
Investment Implications
Urenco, owned by the U.K. and Dutch governments and two German utilities, is not publicly traded. But the expansion benefits the broader nuclear supply chain. Centrus Energy, which won DOE contracts, trades as a proxy for U.S. enrichment capacity. Uranium miners including Cameco Corp. and Energy Fuels Inc. stand to gain from increased domestic fuel demand as utilities diversify away from Russian supply. The U.S. nuclear fleet's stable fuel requirements provide a multi-decade demand floor for enrichment services, with the Energy Department projecting domestic enrichment capacity must roughly double by 2035 to meet projected reactor demand.
This article is for informational purposes only and does not constitute investment advice.
