The World Bank has announced a dramatic return to funding nuclear energy projects, marking a historic reversal after decades of exclusion from the sector. The move, hailed as a “momentous shift for international energy policy” by the World Nuclear Association, aligns with a growing global reappraisal of nuclear power as a key tool for meeting rising energy demands while achieving climate goals.
The decision comes as electrification accelerates in the developing world and energy consumption surges in advanced economies, driven by expanding data centers and artificial intelligence applications. The World Bank cited these dual pressures—rising demand and decarbonization—as core reasons for its policy pivot.
“The acceleration of global electricity demand highlights the significant changes taking place in energy systems around the world and the approach of a new Age of Electricity,” said Keisuke Sadamori, Director of Energy Markets and Security at the International Energy Agency (IEA). “But it also presents evolving challenges for governments in ensuring secure, affordable and sustainable electricity supply.”
According to the World Bank, annual global investments in energy infrastructure will need to more than double—from $280 billion today to $630 billion by 2035. A growing portion of that capital will now be directed toward nuclear energy, with funding expected from the World Bank, public institutions, and private investors alike.
Initially, the World Bank will focus on extending the operational life of existing nuclear power plants. Over the longer term, it plans to support the development of small modular reactors (SMRs), particularly in developing nations. “We won’t be doing work in France or the US,” said World Bank President Ajay Banga. “But Brazil and Romania and India and anybody else who could need it. And clearly, the economics of extending the life of these nuclear power projects is now far more preferential to building a new one.”
This policy shift is expected to influence other major development banks. It reports that the Asian Development Bank is already reassessing its nuclear energy ban and is engaged in stakeholder discussions about expanding involvement in the sector. The African Development Bank and the Asian Infrastructure Investment Bank are also considered likely to follow suit.
The World Bank’s announcement follows a broader global resurgence of interest in nuclear energy. At COP28 last year, over 20 countries, including the United States, committed to the Declaration to Triple Nuclear Energy—a pledge to significantly expand nuclear power generation. Notably, nuclear power is one of the few Biden administration policies expected to receive continued support from former President Donald Trump if he returns to office.
In Europe, nuclear energy is also experiencing a renaissance. Italy and Denmark have initiated steps to overturn four-decade-long bans on nuclear power. Spain has shown increased willingness to extend the life of its nuclear plants. Even Germany—once among the fiercest opponents of nuclear energy—has agreed to drop its objections to nuclear power in EU legislation.
Lauren Hughes, deputy director of the Nuclear Energy Policy Initiative, told the Atlantic Council that this confluence of policy changes suggests nuclear energy is “coming back into favor and being recognized for its ability to provide reliable baseload power.”
Strategic concerns are also at play. It notes that efforts in Washington to pressure the World Bank into revisiting its nuclear stance are driven not just by environmental priorities but also geopolitical competition. Russia and China currently dominate nuclear energy development in emerging markets. By entering the nuclear energy space, the World Bank could help Western allies counterbalance that influence and reassert a presence in global energy infrastructure.
As the international consensus shifts, the World Bank’s reentry into nuclear power marks not only a policy reversal but also a recognition of the evolving realities of the global energy landscape—where low-carbon, reliable, and scalable solutions are becoming more vital than ever.
