Investing.com -- Shares of Cameco (NYSE:CCJ) surged 5% Wednesday following the announcement that Santee Cooper is actively seeking proposals for the acquisition and completion of two nuclear reactors at the V.C. Summer Nuclear Station in South Carolina. The move comes amid heightened demand for electricity and a burgeoning interest in nuclear power, particularly from tech companies aiming to support AI datacenter expansions.
Santee Cooper has engaged Centerview Partners LLC to manage the Request for Proposal (RFP) process, with a deadline set for May 5, 2025. This initiative aligns with a broader industry trend, exemplified by President Trump's recent unveiling of a substantial $500 billion AI investment initiative dubbed Stargate, which underscores the growing need for sustainable energy sources to power technological advancements.
In a related development, the ARKQ ETF managed by Cathie Wood's ARK Invest has acquired an additional 17,504 shares of Cameco, valued at approximately $903,731. This purchase increases the ETF's holding to 215,519 shares, signaling strong investor confidence in the uranium producer's prospects.
While the specific details of the proposals are yet to be disclosed, the interest in reviving nuclear facilities for AI datacenters has cast a positive light on companies like Cameco, which stand to benefit from such developments. The company's stock movement today reflects investor optimism about its potential role in this emerging sector.
The RFP by Santee Cooper and the investment by ARKQ ETF underscore the strategic importance of nuclear energy as a reliable power source for future technological infrastructures. As the deadline for proposal submissions approaches, the market will be closely monitoring the outcomes and potential partnerships that could arise from this opportunity.
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