Meta has announced a series of landmark power purchase agreements securing over six gigawatts of nuclear electricity, a strategic move directly aimed at addressing the colossal energy demands of its artificial intelligence operations. The deals, revealed on Friday, represent one of the largest corporate procurements of nuclear power to date and signal a profound shift in how technology giants plan to power their energy-intensive futures.
The company's strategy employs a diversified, three-pronged approach. For immediate needs, Meta signed a 20-year agreement with utility giant Vistra, securing 2.1 gigawatts from existing nuclear plants in Ohio (Perry and Davis-Besse) and Pennsylvania (Beaver Valley). Vistra will also add 433 megawatts of capacity upgrades to these facilities by the early 2030s.
The core of Meta's forward-looking strategy is a high-stakes bet on next-generation Small Modular Reactor (SMR) technology through partnerships with two startups: Oklo and TerraPower. Meta will purchase 1.2 gigawatts from Oklo, requiring the startup to build over a dozen of its 75-megawatt Aurora reactors, likely in Pike County, Ohio, with power targeted by 2030. Furthermore, Meta has rights to purchase up to six units from TerraPower for 2.8 gigawatts of capacity and 1.2 gigawatts of storage from its Natrium reactor, which uses molten sodium and incorporates a molten salt storage system, with first power targeted for 2032.
The announcement sent Oklo's stock (NYSE: OKLO) soaring over 15%, as the deal marks the pre-revenue company's first major commercial validation. Under the agreement, Meta will prepay for electricity and provide funding to advance Oklo's Aurora project, with pre-construction set to begin in 2026. This support de-risks early procurement and infrastructure, providing Oklo with validated customer demand and partial project funding.
The logic behind Meta's pivot is straightforward. AI training and inference for large language models demand astronomical amounts of electricity. Goldman Sachs forecasts global data center power demand could rise 165% by 2030 compared to 2023 levels. Wedbush analyst Dan Ives notes that such corporate offtakes materially reduce financing and execution risk for nuclear developers. For hyperscalers like Meta, securing reliable, 24/7 carbon-free baseload power is now a strategic necessity to remain competitive in the AI arms race.
However, significant challenges remain. SMRs are unproven at commercial scale in the United States. While TerraPower is already constructing its first demonstration plant in Wyoming and has navigated the Nuclear Regulatory Commission (NRC) process more smoothly, Oklo's regulatory journey has been rockier; its Aurora reactors, which use fast-neutron technology to burn recycled nuclear waste, have no NRC design certification yet. Regulatory timelines for construction permits and operating licenses can stretch 30 months or longer. The financial success of these deals hinges on the startups' ability to deliver on promises of cost, safety, and timeline, with Oklo targeting $80-$130 per megawatt-hour and TerraPower aiming for $50-$60.
