Oklo targets 12 gigawatts of new nuclear power in deal with data center operator
Rendering of the proposed Oklo commercial advanced fission power plant in the US
Courtesy: Oklo Inc.
Nuclear startup OK aims to deploy 12 gigawatts over the next two decades through a framework agreement with a data center operator Transitionthe companies announced Wednesday.
Oklo will build a fleet of small nuclear reactors by 2044 with energy production equal to the annual electricity consumption of more than 9 million US households.
Oklo will develop, build and operate small nuclear power plants. It will sell electricity for the switch through a series of power purchase agreements for data centers in the U.S. Oklo and Switch have yet to sign any individual power purchase agreements.
Oklo shares closed down about 4% on Wednesday.
The broad agreement signed by Oklo and Switch is a non-binding framework that sets high-level goals to meet, Oklo CEO Jacob DeWitte told CNBC in an interview. DeWitte said this creates a vehicle to advance large-scale, multi-site energy development and deployment.
Oklo is a start Backed by OpenAI CEO Sam Altman that is developing micronuclear reactors. Altman is the chairman of Oklo and the company did it market debut in May AltC Acquisition Corp. through merger with SPAC. Oklo has a market cap of $2.33 billion.
“Transformative Scale”
Switch is a privately held company headquartered in Las Vegas that designs, builds and operates data center campuses in the United States. CEO Rob Roy said Switch is committed to deploying advanced nuclear power “at a transformative scale for our data centers” through its relationship with Oklo.
Oklo is developing reactors much smaller than those in the current US fleet. Its reactors are expected to have a power capacity of 15 megawatts to 50 megawatts, 100 megawatts or more. By comparison, the average reactor in the United States is currently around 1,000 megawatts.
DeWitte said the reactors that will serve Switch will initially be 50 megawatts. Oklahoma will need to build 240 reactors of this size by 2044 to meet its 12 gigawatt deployment goal.
Oklo believes its microreactors will reduce the costs associated with building new nuclear plants, shorten construction times and give energy consumers more flexible options.
Oklo has not yet deployed the reactor. The company aims to bring its first plant online in 2027 at the Idaho National Laboratory in Idaho Falls.
People familiar with the matter He told Reuters In September, Switch is considering an initial public offering that would value the company at $40 billion. Purchased privately by the Switch DigitalBridge and IFM Investors for $11 billion December 2022.
Demand for nuclear power is growing in the U.S. as tech companies and other data center developers seek reliable, carbon-free electricity to power artificial intelligence.
Amazon and Alphabet announced investments in small nuclear reactor technology in October. Microsoft is helping to bring the Three Mile Island nuclear power plant to life online again through a energy purchase agreement.
English