Microsoft Needs Baseload Power
Those who want to shape the digital future must provide energy. Although Microsoft posted record revenue of USD 331.8 billion in fiscal year 2026 and boosted net income to USD 133.7 billion, the expansion of its Azure infrastructure continues to consume vast amounts of capital. In the fourth quarter alone, over USD 40 billion was invested, while total spending for the calendar year reached USD 175 billion. Microsoft management already anticipates additional spending of around USD 50 billion for the first quarter of the coming fiscal year. To ensure sufficient power for its data centers, Microsoft secured the full capacity of the 835-MW Three Mile Island Unit 1 reactor through a 20-year contract. At the same time, the company is investing in fusion energy and digitalization solutions for small modular reactors. Microsoft understands that without energy, there can be no growth.
Up-and-Coming Uranium Producer NexGen Receives Key Permits
Demand from Big Tech is also driving interest in uranium companies. NexGen achieved a breakthrough in March of this year, securing final approval for shaft construction and the development of its Rook I project. With the Arrow deposit, the Canadian company holds reserves of 257 million pounds of uranium, a significant portion of which has grades as high as 15.9%. Estimated investment costs total CAD 2.2 billion. With cash and cash equivalents of approximately CAD 756 million, NexGen is moving into the construction phase in the coming weeks, with the goal of producing up to 30 million pounds of uranium annually starting in 2029/2030. NexGen has already signed offtake agreements for 5 million pounds of uranium with US utilities.
Standard Uranium: Major Presence in the Patterson Lake District
Uranium explorer Standard Uranium operates in a promising niche. The company holds a comprehensive project portfolio totaling over 234,700 acres in Canada’s Athabasca Basin. Its flagship project is Davidson River, which spans 30,737 hectares and lies just 25 km west of NexGen’s Arrow deposit. The local geology points to high-grade ore bodies. Instead of raising fresh capital regularly, management employs a well-thought-out “generator” model that relies on cooperation partners. These partners undertake exploration work on adjacent properties in exchange for project interests, allowing Standard Uranium to remain flexible without ceding too many rights. The company prefers to direct its own funds toward the Davidson River project, where a drilling program covering 8,000 to 10,000 m began in the spring of 2026 and was subsequently expanded.
Partnerships as Value Drivers
In addition to Davidson River, the subsidiary projects are also making progress. On the Corvo and Rocas properties, joint venture partners Aventis and Collective Metals had already drilled approximately 3,419 m by early 2026, and initial results are already available. The 19,603-hectare Sun-Dog project, which reverted to full ownership by Standard Uranium at the end of 2025, can also be re-awarded to strategic partners once survey work is completed. Thanks to fresh capital from capital-raising efforts in August 2026 totalling CAD 964,700, as well as a strategic investment agreement worth CAD 3 million, the company is financially well-positioned to carry out multiple drilling programs simultaneously within a single calendar year. This is likely to generate news flow.
Standard Uranium on Industry Experts’ Radar
Standard Uranium’s stock has barely gained momentum over the past six months. This is likely due, in part, to the project’s relatively early stage. However, if forecasts for future energy demand translate into higher demand for uranium and Standard Uranium makes progress at Davidson River and its ancillary projects, Standard Uranium’s stock could also attract more attention. The company operates in the world’s most exciting uranium region, which also poses virtually no geopolitical risks. Since the smart generator model promises progress with limited risks, Standard Uranium also has several irons in the fire and is likely to generate more news flow than comparable small-cap stocks. The stock is a clear candidate for the watchlist. Uranium has a bright future, and Standard Uranium is a promising bet on it.
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