Meta has announced three significant agreements aimed at powering its data centers with nuclear energy. These deals include partnerships with a startup, a smaller energy provider, and a larger company that already operates nuclear reactors in the U.S. The agreements will provide Meta with more than 6 gigawatts (GW) of power, a crucial step as the tech giant continues to expand its data center operations amid growing energy demands driven by artificial intelligence (AI).
Meta has entered into agreements with Oklo, TerraPower, and Vistra to secure over 6 gigawatts (GW) of nuclear power for its data centers. This move is a critical part of the company’s energy strategy, addressing its rising demand for consistent, 24/7 power to fuel AI operations. These new agreements signal a growing trend among tech companies, which are increasingly turning to nuclear power for its stability and capacity.
As AI and data processing requirements expand, tech companies like Meta need a reliable and round-the-clock energy source. Nuclear power fits the bill, providing consistent electricity without the fluctuations that can affect other renewable sources. This demand for stable energy has led to a surge in interest in nuclear power, especially among data center operators.
The partnerships Meta has signed represent a mix of emerging startups and established energy giants. Oklo and TerraPower are at the forefront of developing small modular reactors (SMRs), which are smaller and more cost-effective than traditional reactors. On the other hand, Vistra, a more established nuclear operator, will contribute power from its existing plants.
While startups like Oklo and TerraPower work to scale up their SMR technologies, existing nuclear reactors provide a more immediate and stable option. These reactors are typically the least expensive form of baseload power, offering a cheaper alternative to many other energy sources. However, there is a limited number of such reactors available, which has driven companies like Meta to pursue additional solutions, including SMRs.
Vistra, which operates multiple nuclear plants across the U.S., is supplying Meta with 2.1 GW of power from two reactors located in Ohio. The deal is structured over 20 years, with the additional capacity coming from upgrades to the Perry and Davis-Besse plants. Vistra will also add more power to its Beaver Valley plant in Pennsylvania, increasing output by 433 MW. These upgrades are expected to be completed by the early 2030s.
SMR developers like Oklo and TerraPower are betting that their smaller reactors can reduce costs by using mass production techniques. These reactors could potentially be built in greater numbers, making them a more affordable option in the long run. However, there are still many challenges ahead, especially with regulatory approval and proving that these smaller units can reliably meet the energy demands of major companies like Meta.
Oklo, a startup that went public in 2023, has signed a deal with Meta to supply 1.2 GW of power from its Aurora Powerhouse reactors. These reactors each produce 75 MW, and Oklo will need to build over a dozen units to fulfill Meta’s energy needs. The company aims to begin supplying power to the grid as early as 2030, though it has faced delays in gaining regulatory approval from the Nuclear Regulatory Commission (NRC).
TerraPower, co-founded by Bill Gates, has designed a reactor that uses molten sodium to store and transfer energy. This reactor can produce 345 MW of power, while its storage system allows for an additional 100 to 500 MW for up to five hours. TerraPower has made significant progress with the NRC and is working with GE Hitachi to build its first plant in Wyoming. For Meta, TerraPower will supply 690 MW initially, with an option for an additional 2.8 GW from future reactors.
Meta has not disclosed the financial terms of its agreements. However, it’s clear that the power purchased from Vistra will be the cheapest for Meta, as electricity from existing nuclear plants is typically the most affordable. In contrast, the costs for SMRs are still uncertain, with startups setting ambitious cost targets. TerraPower expects to bring the price down to between $50 and $60 per megawatt-hour, while Oklo aims for $80 to $130 per megawatt-hour for its reactors.
The first reactors from Oklo and TerraPower are expected to cost more, but if they are successful in their mass production strategies, they could eventually offer more affordable power.
Meta’s push for nuclear power is an essential part of its strategy to meet the growing energy demands of its data centers, particularly as AI technologies expand. By partnering with both established companies and emerging startups, Meta is securing a reliable energy future. The agreements also provide a crucial opportunity for SMR developers like Oklo and TerraPower to prove their models, which could ultimately reshape the nuclear energy landscape.