In a groundbreaking development, Oklo Inc. (NYSE: OKLO), an advanced nuclear technology company, has announced a pivotal agreement to supply low-carbon power to Switch, a leading Las Vegas-based data center operator.
This collaboration underscores Oklo’s vision to revolutionize energy use in the technology sector with its innovative small modular nuclear reactors.
Expanding Nuclear’s Role in Technology
Under the non-binding agreement revealed on December 18, Oklo plans to deploy its Aurora powerhouse reactors to meet the energy demands of Switch’s expansive data center operations.
Each Aurora unit is designed to generate up to 15 megawatts of electricity, with a long-term goal of achieving a total capacity of 12 gigawatts by 2044. This marks a significant leap in the utilization of nuclear energy for powering critical infrastructure in the digital age.
“The Aurora powerhouse represents a clean, reliable, and scalable energy solution that aligns with global sustainability goals,” said Jacob DeWitte, CEO of Oklo Inc. “Our partnership with Switch is a testament to the growing demand for innovative energy solutions that reduce carbon footprints.”
Market Reaction
Following the announcement, Oklo’s stock surged by nearly 12%, reflecting investor confidence in the company’s ability to deliver on its promises. The agreement with Switch is expected to solidify Oklo’s position in the burgeoning market for low-carbon energy solutions tailored for data centers—a sector experiencing exponential growth.
A Step Toward Sustainability
Switch, known for operating renewable energy-powered data centers across the United States, serves high-profile clients such as NVIDIA, FedEx, Google, and PayPal.
By integrating Oklo’s nuclear technology, the company aims to enhance its commitment to sustainability and energy reliability, a crucial factor for data-driven industries.
Strategic Partnerships and Growth
This latest deal is part of Oklo’s broader strategy to expand its customer base. In November 2024, the company announced agreements with two other major data center providers to supply up to 750 megawatts of clean energy.
These projects, like the Switch partnership, will leverage the Aurora powerhouse design, which offers flexible deployment of 15 MW and 50 MW units, depending on customer needs.
Oklo’s approach involves building, owning, and operating the powerhouses, enabling the company to generate long-term revenue through power sales. This business model not only reduces dependence on traditional energy grids but also positions Oklo as a leader in the transition to sustainable energy.
Looking Ahead
Since going public in May 2024, Oklo has focused on developing its first fully operational small modular reactor, slated for completion by 2027.
With its expanding portfolio of partnerships and a strong pipeline of potential projects, the company is well-positioned to shape the future of energy in both technology and industrial sectors.
The partnership with Switch signifies a transformative moment for Oklo, showcasing the viability of nuclear energy as a cornerstone of sustainable development.
As the global push for decarbonization intensifies, Oklo’s innovative solutions are paving the way for a greener, more resilient energy landscape.
Also Read
The Federal Reserve and mortgage rates: What to expect from the upcoming meeting
Tokyo stocks fall for fourth consecutive day amid Federal Reserve jitters
