AI Needs Power: This Canadian Stock Could Help Supply it

If there’s one thing artificial intelligence (AI) needs, it’s electricity, and a lot of it. Every data centre built for AI requires huge amounts of reliable power, and that demand is pushing investors to look beyond software and semiconductors. The physical buildout matters now: power plants, transmission, cooling, backup systems, uranium, and fuel supply.

That’s where Denison Mines (TSX:DML) enters the story.

DML

Denison stock is a uranium development company focused on Canada’s Athabasca Basin in northern Saskatchewan. But if nuclear power becomes a bigger part of the AI electricity solution, the uranium supply becomes more important. Denison could help supply it.

The wow number is 106.4 million pounds. That’s the proven and probable mineral reserve estimate for Denison stock’s flagship Wheeler River uranium project, which includes the Phoenix and Gryphon deposits. In a market where utilities are thinking harder about long-term uranium supply, that resource base gives Denison stock a serious place in the Canadian nuclear fuel story.

Furthermore, in February 2026, Denison stock received the final regulatory approval needed to prepare the site and construct the Wheeler River project. It then made a final investment decision for the Phoenix in-situ recovery uranium mine and planned to start construction in March 2026. First production is targeted for mid-2028.

Considerations

Phoenix is especially interesting as it’s expected to use in-situ recovery (ISR) mining. Rather than using a conventional open-pit or underground mine, ISR uses wells to recover uranium from underground ore bodies. If executed well, this approach can reduce the need for large-scale surface disturbance and lower certain development costs.

The AI link comes through nuclear power. Data centres need electricity that can run day and night. Wind and solar help, but they are intermittent. Batteries can smooth supply, but they don’t create power. Nuclear plants offer large-scale, low-carbon base-load electricity.

Furthermore, Denison stock is positioned in one of the world’s premier uranium districts. The Athabasca Basin is known for high-grade deposits, established nuclear expertise, and existing infrastructure. Canada is already a major uranium-producing country, and Denison’s Wheeler River project could add to that supply later this decade.

Looking ahead

There’s also a financing angle investors should watch. Denison stock owns physical uranium and has been using that inventory as part of its project financing plan. In the first quarter of 2026, the company agreed to sell 550,000 pounds of U3O8, with deliveries between the second quarter of 2026 and the first quarter of 2027, at an average price of US$99.07 per pound. By the end of the quarter, 1.35 million pounds had been committed for deliveries between the second quarter of 2026 and the second quarter of 2027.

That gives Denison stock potential cash support while it moves Phoenix forward, with higher uranium prices helping before production even begins. Still, this is not a low-risk stock. Denison stock does not yet have operating cash flow from Phoenix. Construction can face delays, cost overruns, technical challenges, regulatory conditions, and market swings. Uranium prices can also be volatile. If nuclear sentiment cools, or if utilities delay contracting, the stock could fall hard.

Bottom line

Even so, the theme is real. AI needs power, and nuclear energy is back in the conversation. Uranium supply will matter if that conversation turns into new reactors, life extensions, restarts, and long-term fuel contracts. And even now, should shares rise by the same amount as last year, here’s what that could look like for a $7,000 investment.

Denison stock won’t supply electricity directly to data centres. But it could help supply the uranium behind the nuclear power that keeps them running. For investors who can handle risk, Denison stock is one Canadian stock worth watching as the AI power story expands.