Meta signs deals with three nuclear companies for 6-plus GW of power

Meta has made a significant move to power its data centers by securing agreements with three nuclear energy companies. This includes collaborations with Oklo and TerraPower, both of which are pioneering small modular reactors (SMRs), alongside a partnership with Vistra, a well-established energy provider operating several nuclear facilities in the United States. The shift towards nuclear energy comes as tech firms increasingly seek stable, round-the-clock electricity to support their expanding AI ambitions. With rising energy demands, Meta's latest agreements reflect a broader trend where both startups and existing nuclear plants play crucial roles in meeting power needs. While traditional reactors provide the most economical baseload capacity, their limited availability has prompted companies like Meta to explore the potential of SMR startups. Oklo and TerraPower are optimistic about their ability to reduce costs through mass production of smaller reactors. Meta's recent contracts could serve as a pivotal test for these startups. This latest initiative follows a request for proposals issued by Meta in December 2024, where the company sought partners capable of supplying between 1 to 4 gigawatts of generating capacity by the early 2030s. The power generated will primarily feed into the PJM interconnection grid, which serves 13 states across the Mid-Atlantic and Midwest regions and is experiencing a surge in data center activity. Among the agreements, Meta's 20-year contract with Vistra stands out, as it will immediately address the company's energy requirements. Meta plans to purchase 2.1 gigawatts from Vistra's existing nuclear plants, Perry and Davis-Besse in Ohio. This deal includes enhancements to the facilities, anticipated to yield an extra 433 megawatts by the early 2030s. In addition, Meta will source 1.2 gigawatts from Oklo, which aims to start contributing power to the grid by 2030. Despite some regulatory hurdles, Oklo is committed to constructing more than a dozen reactors in Pike County, Ohio, each capable of producing 75 megawatts. TerraPower, co-founded by Bill Gates, is also in the mix, targeting a 2032 timeline for electricity delivery to Meta. This startup has developed a unique reactor design that utilizes molten sodium to efficiently transfer energy. Together, TerraPower's initial reactors for Meta are expected to generate 690 megawatts, with additional options for future capacities. While Meta has not disclosed the financial specifics of these agreements, it is anticipated that electricity from Vistra's existing reactors will remain the most cost-effective option. Meanwhile, SMR costs are still under evaluation, with ambitious pricing targets set by startups like TerraPower and Oklo, aiming to bring costs down significantly in the future.