Tech giants to invest USD $2 billion in nuclear energy by 2026
Forrester has released its 2026 Predictions for Environmental Sustainability, forecasting significant shifts in how enterprises approach sustainability efforts in the coming years.
The report predicts that companies will move away from treating sustainability as a branding exercise and towards genuine initiatives grounded in measurable outcomes. Forrester's analysis outlines a future where only organisations deeply integrating environmental strategy with their core values will successfully secure resources and leverage sustainability for growth.
Energy investment
A key prediction in the report is that hyperscale technology firms will collectively invest more than USD $2 billion in small modular nuclear reactors (SMRs) by 2026. These investments are anticipated as part of broader efforts to meet the rising power demands driven by data centres and the increasing adoption of artificial intelligence.
The report identifies technology giants such as Google, AWS, and Microsoft as likely leaders in this movement, with these firms expected to own and operate nuclear assets within microgrids. Their aim is to address energy resilience and to deliver cost efficiencies required for their operations.
Forrester advises technology leaders to proactively position their organisations to take advantage of SMRs and microgrid deployments. This could be achieved through direct investments or partnership arrangements with hyperscale cloud providers.
Reporting scrutiny
Forrester forecasts an increase in scrutiny over sustainability reporting practices, stating that three Fortune 1000 firms are expected to be revealed for inaccuracies in their sustainability disclosures by 2026. The report highlights the lack of robust data governance frameworks within organisations as a growing concern, especially as regulatory and third-party audits become more comprehensive.
Forrester notes that many companies do not have defined ownership models, mechanisms for data validation, or version controls specifically tailored to sustainability records. With an impending shift of focus from outcomes reported to the methodologies supporting those disclosures, the report suggests sustainability leaders prioritise improving internal governance mechanisms to mitigate compliance failures and the risk of reputational harm.
Analytics market growth
The climate risk analytics market is projected to double by 2026, fuelled by new regulations mandating public disclosures of both greenhouse gas emissions and climate-related financial risks.
California's SB 253 and SB 261 will take effect alongside other global frameworks such as the EU's CSRD, IFRS, and ISSB-aligned disclosures required in the UK, Hong Kong, and Australia. As organisations face rising regulatory obligations, the adoption of climate risk analytics software is expected to accelerate. Forrester advises that investments in these tools can help companies fulfil disclosure requirements, reassess insurance practices, identify necessary adaptation measures, and build trust with investors.
"Organisations that treated sustainability as a marketing exercise will no longer be able to justify their budgets as urgent, short-term demands take precedence," said Abhijit Sunil, Senior Analyst at Forrester and lead author of the report. "Instead, those that root their environmental sustainability efforts into core organisational values and demonstrate measurable returns on investment will grow their budgets and create competitive advantages. Sustainability leaders must strengthen internal governance, invest in the right software solutions, and make strategic partnerships to succeed in this new era of authenticity."
Green jobs outlook
Alongside its environmental sustainability predictions, Forrester has also published its Global Green Jobs Forecast for 2025 to 2030. The forecast projects an increase of 17.9 million green jobs, rising from 66 million to 84 million workers across 14 countries during the period.
The anticipated growth in green jobs will be concentrated in agriculture and renewable energy, with the report identifying China and India as major drivers of this expansion. In Europe, the creation of new jobs is expected to be supported by demand for renewables and electric vehicles, while priorities in the United States are projected to include enhancements to energy efficiency and modernisation of power grids.
