Oklo, a nuclear fission startup backed by Sam Altman, has signed a landmark agreement with data-center operator Switch to supply a record-breaking 12 gigawatts of electricity using small modular reactors. This agreement, Oklo says, is the largest corporate clean energy deal in history.
The reactors, set to be completed by 2044, will power Switch’s energy-intensive data centers that host clients such as Google and Nvidia. For perspective, a single gigawatt is enough to supply electricity to 300,000 homes, making this agreement a monumental step toward clean energy scalability.
A Turning Point for Nuclear Energy and AI Infrastructure
The deal reflects a growing trend: the increasing reliance on nuclear energy to meet the demands of modern infrastructure. AI technologies, in particular, are driving power requirements into previously unimaginable territory. Data centers, the lifeblood of AI operations, demand reliable and consistent energy that current renewable and fossil fuel sources struggle to provide.
Oklo’s partnership with Switch underscores the urgency of addressing this challenge. As AI becomes a cornerstone of technology development, the need for clean, scalable energy solutions is no longer a distant concern—it’s a present necessity.
But this isn’t Oklo’s first bold move. The company has spent the past year signing agreements with prominent partners, showcasing its intent to redefine nuclear energy’s role in power generation.
Oklo’s Growing Portfolio of Partnerships
Earlier this year, Oklo signed non-binding agreements with major players like Diamondback Energy and Wyoming Hyperscale. These partnerships, focused on long-term power purchase agreements, aim to supply significant amounts of electricity to energy-intensive operations. For example:
- April 2023: A letter of intent with Diamondback Energy to supply power for shale-oil operations in Texas.
- May 2023: An agreement with Wyoming Hyperscale to deliver 100 megawatts of electricity to its data center campus.
These collaborations demonstrate Oklo’s strategy to secure large-scale clients across diverse industries. By catering to sectors ranging from oil to tech, the company is positioning itself as a versatile player in the clean energy space.
A Closer Look at Oklo’s Aurora Microreactors
Oklo’s small modular reactors, branded as Aurora, are at the heart of its innovative approach. Unlike traditional nuclear reactors that require vast tracts of land and substantial water for cooling, Aurora microreactors occupy just two acres and operate without water. This streamlined design significantly reduces costs and construction time.
Key features of Oklo’s Aurora reactors include:
- Compact Size: Requires a fraction of the land needed for traditional reactors.
- High Efficiency: Utilizes advanced liquid metal reactor technology to minimize energy waste.
- Customer-Centric Model: Oklo handles all power generation, removing the need for clients to manage their own nuclear plants.
This efficiency-driven model has drawn attention from both the private sector and the U.S. Department of Energy, which awarded Oklo a site use permit in 2019. However, the company still faces regulatory hurdles, as its first reactor application was denied by the Nuclear Regulatory Commission (NRC) in 2022.
Regulatory Challenges and the Road Ahead
Regulatory approval remains the biggest challenge for Oklo. The NRC’s rejection of its initial application highlighted the stringent safety and compliance standards nuclear startups must meet. Yet Oklo remains optimistic, leveraging its partnerships with Switch and others to scale its operations and refine its approach.
The startup aims to bring its first reactor online by late 2027. If successful, this would mark a significant milestone for Oklo and set the stage for broader adoption of modular nuclear technology.
The Bigger Picture: Why This Deal Matters
The Switch agreement isn’t just a business milestone for Oklo; it’s a statement about the future of energy. As industries like AI and cloud computing expand, traditional energy sources will struggle to keep up with the demand. Nuclear energy, long stigmatized, is emerging as a key solution for consistent and clean power.
Moreover, this deal dwarfs other recent agreements, such as Microsoft’s plan to restart parts of the Three Mile Island nuclear plant. Oklo’s ability to secure a 12-gigawatt commitment underscores the growing confidence in its technology and vision.
As Bonita Chester, an Oklo spokesperson, put it: “This collaboration goes beyond financial investment; it is about forming long-term partnerships that accelerate deployment and scale the business sustainably.”
Oklo is betting big on the future of energy and deals like this suggest it’s a gamble worth watching. For a startup with bold ambitions and the backing of tech heavyweights, the road ahead is filled with challenges—but also immense potential.
