Dual Engines of Demand. Why Coal and Nuclear Still Power the Future

In an era of rapid electrification and rising data intensity, the global energy market is undergoing a dramatic transformation. Amid the headlines dominated by renewables and lithium breakthroughs, two legacy power sources, nuclear and coal, are quietly regaining relevance. From AI data center expansions to geopolitical fuel security, demand-side pressures are colliding with capacity constraints in ways that could position both sectors for a powerful resurgence.

Nuclear Power: The Digital Infrastructure Workhorse

Perhaps no energy source has gained more strategic importance in the age of artificial intelligence than nuclear. In early June, Meta Platforms signed a 20-year agreement to draw clean electricity from the Clinton Clean Energy Center in Illinois to power a growing fleet of data centers, effectively cementing nuclear as a cornerstone of next-gen digital infrastructure¹.

Meta joins a cohort of tech giants including Microsoft, Amazon, and Google who are aggressively seeking 24/7 carbon-free energy to support their AI ambitions². Unlike wind and solar, which are variable by nature, nuclear provides a stable, baseload source that can run uninterrupted. It’s this reliability that makes nuclear ideal for AI workloads and mission-critical compute centers, which cannot afford downtime.

Beyond the private sector, policy tailwinds are gaining force. The U.S. government recently rolled out a new strategy to expedite the buildout of nuclear facilities, including small modular reactors (SMRs) and advanced designs. Among the most notable developments: a growing consensus to eliminate redundant licensing hearings that delay project timelines and inflate costs³.

Coal’s Relentless Utility in the Global South

While coal remains politically contentious in the West, its demand is surging across Asia and parts of the developing world. In India, where over 70% of electricity generation still comes from coal, the government is reopening 32 previously shuttered mines and planning dozens of new coal plants to keep pace with rising urbanization⁴. Coal India, the world’s largest coal miner, has publicly announced expansion efforts to meet this domestic need.

Elsewhere, Australian exports of metallurgical coal, essential for steelmaking, are hitting record highs. Queensland’s mines are benefiting from renewed interest in traditional industrial capacity, particularly as Western countries re-shore manufacturing⁵.

Even in China, where coal construction had briefly slowed, approvals have reaccelerated. In Q1 2025 alone, Beijing greenlit 11.3 gigawatts of new coal-fired capacity, citing grid stability concerns and regional power demand⁶. These aren’t outdated, soot-spewing facilities either. Many are high-efficiency, low-emission designs with longer-term viability.

Energy Security Is the Common Denominator

What unites both nuclear and coal in this new cycle is not nostalgia, it’s necessity. Energy security is becoming the organizing principle of industrial policy. In regions where natural gas is unaffordable or geopolitically risky, coal remains a vital hedge. And where decarbonization is mandated but storage technology is still maturing, nuclear offers the only scalable solution.

As grid demands surge, particularly from EVs, heat pumps, and the looming AI explosion, the baseload stability offered by both energy sources will be difficult to replace. The future of energy is not just clean or green; it’s firm, flexible, and geopolitically secure.

Investing Ahead of the Curve

Markets are beginning to reflect this shift. Shares of nuclear technology firms and coal logistics companies have outperformed broad energy indices in recent weeks. For investors, this is more than a contrarian bet, it’s a structural opportunity hiding in plain sight.

With the right exposure, investors can benefit from long-term contracts, infrastructure buildouts, and policy-driven upside. Whether through specialized ETFs, individual equities, or supply chain investments, the coal and nuclear sectors are back in play.

An Unlikely but Necessary Duo

While they may seem like strange bedfellows, nuclear and coal power now share a critical mission: keeping the lights on in a rapidly electrifying world. As policymakers, corporations, and consumers demand more power, faster, and cleaner, the most viable path forward may require revisiting the energy sources we once took for granted.

The question now isn’t whether coal and nuclear are part of the future, it’s how investors can position themselves before the world catches up.

How May Investors Gain Exposure to Companies in the Coal and Nuclear Power Industry?

The Range Global Coal Index ETF (COAL) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Range Global Coal Index. The Index aims to track the performance of a portfolio of stocks that are involved in the met and thermal coal industry.

The Range Nuclear Renaissance Index ETF (NUKZ) seeks to track the performance, before fees and expenses, of the Range Nuclear Renaissance Index. The index aims to track the performance of a portfolio of stocks that are involved in the nuclear fuel and energy industry.

See www.rangeetfs.com/nukz  and www.rangeetfs.com/coal for a full list of positions. Holdings subject to change.

Sources

1 AP News, “Meta becomes the latest big tech company turning to nuclear power for AI needs,” June 2025.

2 CNBC, “Microsoft and Google seek 24/7 carbon-free energy to power AI,” May 2025.

3 Utility Dive, “Former NRC commissioners back elimination of mandatory nuclear hearings,” May 2025.

4 Reuters, “India reopens 32 coal mines to meet surging demand,” June 2025.

5 The Courier Mail, “Queensland coal demand hits record high,” June 2025.

6 Reuters, “China’s approvals of coal power plants grow after 2024 decline,” June 2025.

Risk Disclosures:

Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's full or summary prospectus, which may be obtained by visiting www.rangeetfs.com/nukz and www.rangeetfs.com/coal. Read it carefully before investing or sending money.

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated investment objectives.

Investments in the energy industry are subject to significant volatility due to changes in commodity prices. Additional risks include changes in exchange rates, government regulation, world events, economic and political conditions in the countries where energy companies are located or do business, and risks for environmental damage claims.

The Fund is non-diversified. Its concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.

Nuclear companies may be subject to substantial government regulation and contractual fixed pricing, which may increase the cost of doing business and limit the earnings of these companies. A significant portion of revenues of nuclear companies depends on a relatively small number of customers, including governmental entities and utilities. As a result, governmental budget constraints may have a material adverse effect on the stock prices of companies in this sub-industry.

International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in smaller companies typically exhibit higher volatility.

The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.

Because the Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation.

The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Moreover, investors will not be able to evaluate the Fund against one or more comparable funds on the basis of relative performance until the Funds has established a track record.

Exchange Traded Concepts, LLC serves as the investment advisor of the funds. NUKZ, LNGZ, COAL, and OFOS ETFs are distributed by SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC, or any of its affiliates.