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Bank of America warns of labor shortages and cost risks in nuclear data center power builds
Monday, March 23, 2026 at 12:35 PM
Bank of America identifies a significant labor and expertise bottleneck in nuclear power construction, noting that only Bechtel and Fluor possess recent project experience. The broader engineering, procurement, and construction (EPC) sector lacks the specialized talent required for new builds, which is expected to result in cost and schedule overruns for the first wave of 3 to 5 units of any new reactor design.
Context
As of March 2023, Bank of America (BofA) has issued a cautious outlook on the nuclear energy sector, specifically regarding the build-out of power for AI data centers. Analysts warn of a severe bottleneck in the Engineering, Procurement, and Construction (EPC) landscape, noting that specialized nuclear expertise is not easily transferable from other sectors. The bank identifies Bechtel and Fluor as the only two major players with significant recent execution experience, while the broader universe of 10 to 15 other EPC firms lacks a modern nuclear track record.
This talent scarcity implies that the first 3 to 5 units of any new reactor design will likely face meaningful cost and schedule overruns. BofA characterizes these early builds as "rough," highlighting that competition for a limited pool of project leadership increases the risk of mis-staffing. While Fluor remains a key beneficiary due to its foundational role in the U.S. uranium enrichment market and its investment in NuScale Power, investors are cautioned that the sector must rebuild its labor base from a thin foundation to meet the surging electricity demands of the semiconductor and AI supply chains.
Sources (8)
Fluor Selected as Engineering, Procurement and Construction Partner for Expansion of Centrus’ Uranium Enrichment Plant in Ohio | Fluor
Bank of America Research Points To Nuclear Growth And Potential Of Small Modular Reactors
Nuclear energy: Who, what, where, when, why?Fluor Nuclear Power Plant Engineering & ConstructionAffordability Is Key to Nuclear Power’s Big Future - BechtelNuclear Energy Staffing & Workforce Solutions | System OneNuclear power employment trends to look out for in 2026Nuclear Engineer Shortage: How to Get Ahead in 2026 - aeg-inc.com
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