Oklo and data center operator agree on 12 gigawatts of new nuclear power.

• By 2044, Oklo and Switch plan to introduce 12 gigawatts of new nuclear energy.
• Oklo would construct, operate, and sell electricity from small nuclear plants to Switch through power purchase agreements.
• The nonbinding framework between Oklo and Switch aims to lead to binding power deals in the future, the companies stated.

The nuclear startup and data center operator Switch have agreed to a framework for deploying 12 gigawatts of power over the next two decades.

By 2044, Oklo plans to deploy a fleet of small nuclear reactors with a combined power generation capacity equivalent to the annual electricity consumption of more than 9 million households in the U.S.

Oklo would construct, operate, and sell electricity from small nuclear plants to Switch through multiple power purchase agreements for its data centers across the U.S. However, Oklo and Switch have not yet signed any individual power purchase agreements.

Oklo's stock rose more than 10% in premarket trading.

Jacob DeWitte, CEO of Oklo, stated in an interview with CNBC that the broad agreement signed by Oklo and Switch is a nonbinding framework that establishes high-level goals to achieve. This agreement serves as a vehicle to advance large-scale, multi-site power development and deployment, DeWitte explained.

Oklo, a startup backed by OpenAI CEO Sam Altman, is developing micro nuclear reactors. Altman serves as Oklo's chairman and the company made its market debut in May through a merger with his SPAC, AltC Acquisition Corp. Oklo's market capitalization is currently $2.33 billion.

'Transformative scale'

Switch, a privately held company based in Las Vegas, designs, constructs, and operates data center campuses in the U.S. CEO Rob Roy announced that Switch is dedicated to utilizing advanced nuclear power on a massive scale for its data centers through its partnership with Oklo.

Oklo is creating smaller reactors than those in the U.S. fleet, with power capacities ranging from 15 to 100 megawatts or more. In contrast, the average U.S. reactor currently has a capacity of around 1,000 megawatts.

To achieve the 12 gigawatt deployment goal, Oklo must construct 240 50 megawatt reactors by 2044, according to DeWitte.

Oklo believes its microreactors will decrease the expenses of constructing new nuclear power plants, shorten construction schedules, and offer customers more adaptable energy choices.

Idaho National Laboratory in Idaho Falls will be the site of Oklo's first reactor deployment in 2027.

In September, sources close to the matter informed Reuters that Switch was considering an IPO that would value the company at $40 billion. However, Switch was acquired by and IFM Investors for $11 billion in December 2022.

The demand for nuclear power is increasing in the U.S. due to the need for dependable, carbon-free energy to power AI technology by tech companies and data center developers.

Microsoft is assisting in the restart of the Three Mile Island nuclear power plant through a power purchase agreement.