"Oklo and TerraPower, two startups developing small modular reactors (SMR), each signed agreements with Meta to build multiple reactors, while Vistra is selling capacity from its existing power plants. Nuclear power has become a favored power source for tech companies as their AI ambitions have grown, providing stable 24/7 electricity. Startups and existing reactors have benefitted from the race for data center power, though in different ways."
"Existing reactors tend to be the cheapest form of baseload capacity, but there are only so many to go around, which has pushed Meta and its peers toward SMR startups. Companies like Oklo and TerraPower are betting that by building a large number of smaller reactors, they'll be able to bring the cost down through mass manufacturing. It's a plausible hypothesis, though one that has yet to be tested. Meta's deal could give SMR startups a chance to prove it."
Meta signed three agreements to supply data centers with nuclear power: two with SMR startups Oklo and TerraPower to build multiple small reactors, and one with Vistra to purchase capacity from existing plants. Meta issued a December 2024 request for proposals seeking 1 to 4 gigawatts of capacity by the early 2030s, much of it for the PJM interconnection. The 20-year Vistra deal provides 2.1 gigawatts from Perry and Davis-Besse and includes upgrades adding 433 MW across Ohio and Pennsylvania by the early 2030s. Limited existing reactors and lower-cost potential drive interest in SMRs and mass manufacturing to reduce costs.
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