Nuclear startup Oklo has announced an ambitious but non-binding agreement with data center giant Switch to provide 12 gigawatts of nuclear power by 2044. Under the proposed deal, Oklo would construct and manage small modular reactors (SMRs) to power Switch's facilities, which host major tech companies including Google, Nvidia, Tesla, and PayPal.
The agreement marks a potential milestone for Oklo, chaired by tech entrepreneur Sam Altman, who first invested in the company in 2015. Following a reverse merger with Altman's AltC earlier this year, Oklo's stock has shown resilience despite initial fluctuations.
However, several challenges lie ahead before the deal becomes reality. Oklo must first secure approval from the Nuclear Regulatory Commission (NRC), following a previous application rejection in 2022. The company plans to submit a new application in 2025, hoping to benefit from upcoming regulatory changes.
If approved, Oklo aims to launch its first reactor by 2027, starting with 15-megawatt facilities before scaling up to 50-100 megawatts. Meeting the Switch agreement's scale would require building dozens to hundreds of these SMR plants.
The nuclear startup faces strong competition in the data center power market. Rival Kairos has already secured NRC approval and struck a deal with Google. Additionally, renewable energy alternatives continue to gain ground, with Google recently backing a $20 billion solar, wind, and battery storage project scheduled to begin operations in 2026.
The agreement highlights growing interest in nuclear power for data centers, though execution remains uncertain given regulatory requirements and market competition. For now, both companies maintain optimism about the partnership's potential to reshape data center energy supply.