When Hyperscalers Come Knocking: Is NuScale Next in Line to Power Up?

"Meta Platforms ( NASDAQ:META ) announced nuclear power agreements this morning with three companies to support its artificial intelligence (AI) data centers. The deals include 20-year power purchases from Vistra ( ) for three existing plants in Ohio and Pennsylvania, financing expansions and life extensions to provide up to 6.6 gigawatts by 2035. With Oklo ( ), Meta will partner on small modular reactors in Ohio for up to 1.2 gigawatts starting in 2030. TerraPower will receive funding for two reactors delivering up to 690 megawatts by 2032, with options for six more by 2035."

"Hyperscalers require nuclear power due to the massive electricity demands of AI data centers, which need consistent, carbon-free energy to operate without grid disruptions. Microsoft ( NASDAQ:MSFT ) CEO Satya Nadella highlighted this in a November podcast, stating, "The biggest issue we're having now isn't chips - it's power," and noting that chips sit idle without sufficient electricity infrastructure. He added that the challenge is "the ability to get the builds done fast enough close to power," emphasizing power as the new bottleneck in AI expansion. This is reflective of broader industry constraints where data center growth outpaces available grid capacity."

"Meta selected Oklo as a partner for its focus on small modular reactors (SMR), which offer cost savings through factory construction, though no such reactors are yet commercially operational in the U.S. and require permits. Oklo's approach aligns with Meta's need for scalable, on-site power solutions to meet AI demands starting in 2030."

Meta entered multi-company nuclear agreements to supply large-scale, reliable power for AI data centers. The Vistra deal covers 20-year purchases and financing to expand and extend life at three existing plants in Ohio and Pennsylvania, targeting up to 6.6 gigawatts by 2035. The Oklo partnership focuses on small modular reactors in Ohio for up to 1.2 gigawatts starting in 2030. TerraPower will receive funding for two reactors delivering up to 690 megawatts by 2032, with options for additional units by 2035. Hyperscalers face power as a primary bottleneck, and NuScale holds a regulatory lead on SMR design approval.

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