Switch to buy 12 GW of nuclear from Oklo for data centers
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A rendering of an Oklo Aurora powerhouse. Image: Courtesy of Gensler
Advanced nuclear group Oklo announced that it's signed an agreement to sell 12 GW of power from planned nuclear projects to data center company Switch.
Why it matters: It's one of the largest deals for clean energy to date and highlights the insatiable need for renewable electricity to power AI data centers.
Zoom in: Oklo, which was funded early on by OpenAI CEO Sam Altman, says the deal is a "non-binding" agreement to deploy reactors through 2044.
- The Sunnyvale, Calif.-based company says it expects to reach binding agreements around individual projects.
- Oklo plans to deploy plants in the range of 50 MW to 100 MW for Switch. The company's initial reactors will be 15 MW each, far smaller than a conventional large nuclear plant.
Catch up quick: Oklo has developed a modular "fast reactor" where the nuclear fuel rods are cooled by liquid metal instead of water.
- Oklo, was founded in 2013 and went through Y-Combinator where Altman was the president. The company went public in May via a SPAC that was co-created by Altman and investor Michael Klein.
- Oklo's shares initially fell in its debut but have since recovered and later traded almost double its launch price. The company's stock was up over 11% in pre-market trading this morning on the Switch news.
- Switch is a Las Vegas-based data center company that lists major clients like Google, Nvidia and Cisco. Switch buys 100% clean energy to support its facilities.
The big picture: Advanced nuclear has emerged as a key power source for tomorrow's AI data centers. Google, Microsoft, Meta and Amazon have all shown interest.
State of play: Other advanced nuclear companies include Kairos Power, X-energy, TerraPower, and NuScale.
Yes, but: It'll take several years for the advanced nuclear companies to commercialize their reactors.
- Nuclear is highly regulated and dependent on approval by the Nuclear Regulatory Commission.
- Project designs have also notoriously gone over budget in recent years, partly thanks to inflation.
The bottom line: Big Tech's advanced nuclear deals could kick-start project deployments and could act as a linchpin for the sector.
