As energy costs for data centers continue to soar, technology companies are increasingly turning to nuclear power as a reliable and carbon-free energy source. In a notable move, Meta has decided to invest in a startup focused on small modular reactor technology by financing the fuel for its first reactors. The agreement emphasizes Meta’s commitment to nuclear energy at a time when the industry is seeing a resurgence.
The nuclear sector’s fortunes have improved in recent years, driven by long-term contracts signed by major companies such as Google, Amazon, and Microsoft with energy providers. U.S. nuclear capacity is projected to increase by 63 percent over the coming decades, primarily fueled by the growing demand from data centers.
Meta’s investment in this domain includes a prepayment for power from Oklo, a U.S. startup working on small modular reactors. The funds will help Oklo procure nuclear fuel for a 1.2-gigawatt plant in Ohio, which is expected to be operational by as early as 2030. This initiative is part of Meta’s broader strategy to invest in nuclear energy, which also includes partnerships with utility company Vistra and Bill Gates-backed TerraPower.
These collaborations could collectively provide up to 6.6 gigawatts of nuclear power by 2035. Meta’s agreements with Vistra involve extending and expanding three existing reactors, while the deal with TerraPower focuses on developing advanced small modular reactors. An earlier arrangement with Constellation Energy aims to extend the life of an Illinois power station for an additional 20 years.
“Our agreements with Vistra, TerraPower, Oklo, and Constellation make Meta one of the most significant corporate purchasers of nuclear energy in American history,” stated Joel Kaplan, Meta’s chief global affairs officer. This landmark deal marks a notable shift, as it is reportedly the first instance in which a tech company has purchased fuel for the electricity it plans to buy, according to Koroush Shirvan, a researcher at MIT. “I’m trying to think of any other customers who provide fuel other than the U.S. government,” Shirvan remarked.
One of the driving forces behind this unconventional agreement is the complexity of securing fuel for advanced reactors like Oklo’s. The startup requires a specialized type of fuel known as high-assay low-enriched uranium, or HALEU, which is approximately four times more enriched than conventional reactor fuel. Although American companies are working to develop this fuel domestically, current commercial suppliers are limited to Russia and China. As a result, the cost of nuclear fuel has surged, particularly following a federal ban on certain uranium imports from Russia.
Oklo plans to utilize the funds from Meta to secure fuel for the initial phase of its Pike County power plant, which will supply the electrical grid serving Meta’s data centers in the area. While the facility is aiming for a 2030 launch, it is projected that it will not reach its full capacity of 1.2 gigawatts until 2034.
This strategic investment poses a certain level of risk for Meta. The Nuclear Regulatory Commission (NRC) rejected Oklo’s initial license application in 2022, and the startup has yet to resubmit. An anonymous former NRC official who was involved with the application described Oklo as possibly “the worst applicant the NRC has ever had.” Despite this setback, Meta appears to be diversifying its nuclear investments.
The partnership with TerraPower aims to fund the development of two reactors capable of generating up to 690 megawatts by 2032, with rights for energy from six additional units by 2035. “We’re getting paid to start a project, which is really different,” remarked TerraPower CEO Chris Levesque. The collaboration signifies a tangible commitment to advancing nuclear technology.
Meanwhile, the agreement with Vistra is more traditional in nature. Meta has committed to purchasing over 2.1 gigawatts of energy over a 20-year period from the existing capacities of Vistra’s Perry and Davis-Besse plants in Ohio. Additionally, Meta will acquire another 433 megawatts from expansions at these plants and the Beaver Valley plant in Pennsylvania. These facilities were once expected to close, but Vistra is now planning to apply for license extensions.
Collectively, these three agreements represent a significant bet on the potential of nuclear power to meet the future energy demands of artificial intelligence (AI) technologies. The critical question will be whether AI will rely on the same energy-intensive models by the time these plants become operational in the next decade. Regardless, the current AI boom is contributing to a nuclear renaissance that holds promise for a more sustainable energy landscape.
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