Meta Platforms Inc. is poised to become one of the largest corporate purchasers of nuclear power globally, as it engages in multiple agreements to secure electricity amid the escalating demand driven by artificial intelligence. The company’s initiatives could culminate in more than 6 gigawatts of power, sufficient to supply a city of approximately 5 million homes. These deals include electricity purchases from three operational plants owned by Vistra Corp., alongside support for several advanced reactors being developed by Oklo Inc., backed by Sam Altman, and TerraPower LLC, which counts Bill Gates among its sponsors.
The announcement of these agreements has notably impacted stock prices, with Vistra shares rising by as much as 16% on Friday in New York, while Oklo’s shares saw an increase of 19%. Meta’s stock also experienced a modest gain of 0.9%. This surge highlights the intense competition among major tech companies to secure energy resources as the demand for AI technology surges. According to Grid Strategies, an energy consulting firm, U.S. power consumption is projected to increase by at least 30% by 2030, predominantly due to the expansion of data centers. Other tech giants such as Amazon.com Inc., Alphabet Inc., and Microsoft have previously entered into similar agreements, but Meta’s new ventures significantly eclipse these efforts.
While Meta has not disclosed the financial details of the contracts, such large-scale agreements could easily translate into billions of dollars in revenue for electricity suppliers. These latest contracts follow a previous agreement from June that involved acquiring energy from a Constellation Energy Corp. nuclear facility. Urvi Parekh, Meta’s head of global energy, stated that these agreements are designed to address concerns over the closure of existing nuclear power facilities and underscore the necessity for early investment in new nuclear capabilities.
“There isn’t a one-size-fits-all approach that’s gonna get us to where the U.S. needs to go in order for nuclear to be a material part of the energy mix,” Parekh commented, emphasizing the company’s ongoing commitment to low-carbon energy solutions. While the recent spike in power demand for data centers has rekindled interest in nuclear energy, some hyperscalers that previously emphasized sustainability have begun exploring or pursuing contracts with natural gas-fired plants, which can be constructed more rapidly. In contrast, nuclear projects often require a decade or more for development and construction, leading to a pressing need for immediate energy solutions.
In contrast, in 2024, Microsoft Corp. and Brookfield Asset Management’s green energy division announced a landmark clean energy agreement involving over 10.5 gigawatts of renewable capacity, estimated at around $17 billion. Building new nuclear infrastructure typically incurs costs ranging from $13 to $24 per watt, depending on the technology employed, according to BloombergNEF. At the higher end, 6 gigawatts of advanced nuclear energy could demand over $120 billion in capital expenses. For Meta, the price of nuclear energy is projected to range between $141 and $220 per megawatt-hour, significantly higher than the $50 to $60 range for gas, wind, or solar energy, according to analyst Rob Barnett from Bloomberg Intelligence.
“That’s a pretty hefty number,” Barnett noted. Nonetheless, tech companies are inclined to pay these costs due to the reliability that nuclear energy provides, as it can operate continuously unlike renewable sources. Furthermore, nuclear fuel costs tend to be more stable compared to natural gas, which is subject to fluctuations influenced by geopolitical factors. Embracing carbon-free power aligns with Meta’s sustainability objectives, a priority that remains significant despite some recent shifts in focus among other sectors.
Meta’s agreements follow CEO Mark Zuckerberg’s commitment to invest hundreds of billions of dollars by the decade’s end into AI and the necessary infrastructure. Key projects include “Prometheus,” a 1-gigawatt data center in New Albany, Ohio, expected to become operational this year, and “Hyperion,” a potential 5-gigawatt facility in rural Louisiana, set to launch in the coming years. The Hyperion project is slated to be powered by at least three natural gas plants, with utility Entergy Corp. applying to enhance natural gas generation in the region.
The newly announced nuclear agreements will also support the Prometheus facility in Ohio. Although Meta has not revealed specific financial terms, research from Jefferies LLC suggests that the estimated cost for the electricity may exceed $100 per megawatt-hour across the three contracts. Parekh emphasized, “If we are unable to generate more electricity, that could hurt the ability of AI to grow faster,” highlighting the need for diverse energy solutions as AI continues its expansive growth.
Under the arrangement with Vistra, Meta is set to purchase energy from the Davis-Besse and Perry reactors in Ohio, which collectively contribute over 2.1 gigawatts of operational capacity. Additionally, improvements aimed at enhancing output from these plants and from the Beaver Valley facility in Pennsylvania will further bolster supply. In a separate agreement with Oklo, Meta will secure up to 1.2 gigawatts from reactors expected to be operational by 2030, pending federal approval for a planned 75-megawatt reactor. Meta has also committed to supporting the development of two reactors by TerraPower, capable of generating an additional 690 megawatts, with energy delivery anticipated as early as 2032.
Zuckerberg has articulated a vision to “aggressively front-load building capacity” to mitigate any risks associated with under-investing in AI infrastructure. “It’s clear that nuclear energy has to be a big part of meeting the demand for power from AI,” stated TerraPower CEO Chris Levesque, underscoring the strategic importance of these developments for the future of AI and energy infrastructure.
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