AI Power Demand Revives the SPAC

Valuation Outlook

October 9, 2026

AI Power Demand Revives the SPAC

The special purpose acquisition company is emerging as a financing tool for advanced nuclear power operators.

After the wind-down of the peak of the cycle in 2020-21, the special-purpose acquisition company (SPAC) has recently demonstrated its applicability as an important financing vehicle for the clean-tech sector, especially for nuclear energy developers, as AI has fueled a sharp increase in electricity demand.

The nuclear-SPAC cycle reflects the intersection of capital needs, projected power demand and the unique characteristics of the advanced nuclear energy industry. AI has provided nuclear developers with a credible growth story, and SPACs, which offer an alternative to a traditional IPO, provide the access to capital needed to pursue accelerated growth ambitions.

The growing demand for clean power is resulting in AI companies making large bets on nuclear companies, some of which have yet to demonstrate scalable commercial power capabilities. Power purchase agreements (PPAs) are frequently being made years in advance of actual energy delivery. For example, Meta has entered into numerous PPAs across multiple states to support its data centers, such as a 20-year nuclear power agreement with Constellation Energy.

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SPAC Emergence

The demand for capital to finance growing operation lends itself well to the return of SPACs, particularly in a year in which mega-IPOs have made it difficult for smaller companies to receive investor attention. And with AI fueling a sustained appetite for energy, there is the potential for a wide range of nuclear companies to emerge as “winners” from the boom.

The International Energy Agency projects that the electricity generation to supply data centers will grow nearly three times over the next decade: 460 TWh in 2024 to 1,000 TWh in 2030 and 1,300 TWh in 2035. This demand profile is well matched to nuclear power’s operating profile, using microreactors that can be deployed locally and provide continuous carbon-free power.

Advanced nuclear companies are unusually well suited to SPAC transactions, with most facing multiyear development programs requiring significant investment. A SPAC permits management teams to negotiate valuation directly with a sponsor, while investors in a traditional IPO place greater weight on revenue, comparable-company valuations and near-term earnings visibility.

The nuclear power SPAC cycle has been building for several years. NuScale Power and Oklo went public via SPACs in 2022 and 2024, respectively, and Terrestrial Energy recently completed its SPAC transaction in 2025.

Hadron Energy and General Fusion also completed SPAC transactions in 2026, with the latter becoming the first publicly traded fusion company. NewCleo, a nuclear power startup, and TECfusions, a data center operator, both announced plans to go public via SPAC in summer 2026, evidencing the impact of AI development. NewCleo completed its transaction on September 21.

But even without considering AI-driven demand, the energy sector is enjoying a positive outlook. The widespread push toward renewable and carbon-free power, such as solar, wind, hydro and geothermal energy, is also potentially a driving force behind SPAC activity.

Importance of Independent Valuation and Opinions

As de-SPAC transactions involve a shell company taking a private company public, there are many variables, such as equity compensation, fundraising and internal alignment, that make accurate, independent valuations essential. Given these variables, transaction opinions in connection with these transactions are also crucial to ensure fairness for all parties.

While companies should perform valuations on a consistent cadence, they are especially crucial in the lead-up to any M&A or take-public transaction. Late-stage clients need bespoke and consultative guidance that ensures accurate, defensible valuations.

Kroll offers expertise in performing 409A valuations that determine the fair market value of a company’s common stock, serving as a trusted advisor to privately held clean-tech companies as they consider future financing events. The firm supports fairness and solvency opinions in connection with SPAC transactions.

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