In a significant development in the world of nuclear energy, startup Oklo has signed a massive deal with data center operator Switch. The agreement would see Oklo building enough small modular reactors (SMRs) by 2044 to generate 12 gigawatts of electricity for Switch’s data centers, which serve a wide range of companies including Google, Nvidia, Tesla, PayPal, JP Morgan Chase, and others.
Key Details of the Deal
- Power Generation: The deal would see Oklo generating 12 gigawatts of electricity through its SMRs.
- Timeline: Oklo aims to deliver dozens to hundreds of its SMR power plants by 2044.
- First Reactor: The first reactor is expected to produce 15 megawatts of electricity before ramping up to 50-100 megawatts.
Challenges Ahead
While the deal is significant, it’s not without challenges. Oklo still needs to secure approval from the Nuclear Regulatory Commission (NRC) after its previous application was denied in 2022. The company plans to resubmit a new application in 2025, hoping that new legislation taking effect next year will speed up the process.
Competition and Alternatives
Oklo faces stiff competition from other nuclear startups, including Kairos, which has already received NRC approval and has a deal with Google to supply its data centers with electricity. Additionally, renewable power projects and grid-scale batteries continue to drop in price, making them increasingly competitive alternatives.
Renewable Power and Grid-Scale Batteries
Google recently announced that it was helping to anchor a renewable power deal worth $20 billion, which will see the construction of solar, wind, and battery infrastructure. The first phase of the project is expected to be operational by 2026.
Climate, Data Centers, Fission, Nuclear Power, Oklo, Sam Altman, Startups
The agreement between Oklo and Switch marks a significant step forward in the development of nuclear energy for data centers. However, the company still faces numerous challenges before it can deliver on its promises.
Oklo’s Path to Approval
To secure NRC approval, Oklo will need to navigate the lengthy application process, which has already proven to be challenging in the past. The company plans to resubmit a new application in 2025, hoping that new legislation taking effect next year will speed up the process.
The Role of Sam Altman
Sam Altman, Oklo’s board chair and a prominent figure in the tech industry, has been instrumental in supporting the company. He invested in Oklo’s seed round in 2015 after it emerged from Y Combinator. In May of this year, Oklo completed a reverse merger with AltC, Altman’s blank check company.
Implications for the Industry
The agreement between Oklo and Switch has significant implications for the data center industry, which is increasingly looking to reduce its carbon footprint. Nuclear energy offers a zero-carbon alternative to traditional fossil fuels, making it an attractive option for companies seeking to power their data centers sustainably.
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About the Author
Tim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next.
