Jamie Spencer
Oklo, a nuclear energy startup backed by OpenAI CEO Sam Altman, has announced an ambitious partnership with data center operator Switch to deploy 12 gigawatts of nuclear power by 2044. The collaboration aims to meet the growing demand for reliable, carbon-free electricity to power data centers and emerging technologies like artificial intelligence.
Oklo plans to develop, build, and operate a fleet of small nuclear reactors, supplying electricity to Switch through power purchase agreements (PPAs) for its U.S.-based data centers. While no specific PPAs have been signed yet, the partnership represents a significant step toward large-scale deployment of advanced nuclear technology.
A Vision for Carbon-Free Energy at Scale
Switch CEO Rob Roy described the partnership as “a transformative scale” effort to bring advanced nuclear power to its data centers. The collaboration underscores a broader shift among tech companies and infrastructure developers seeking sustainable, scalable energy solutions.
Oklo’s reactors are designed to be significantly smaller than conventional nuclear plants. With capacities ranging from 15 to 100 megawatts, these reactors are modular and flexible, aiming to cut construction costs and timelines. The reactors supporting Switch will primarily be 50 megawatts, requiring the construction of approximately 240 units to achieve the 12-gigawatt target by 2044.
Backed by Big Names and Big Ambitions
Oklo’s meteoric rise is partly fueled by its association with high-profile backers like Sam Altman, who serves as chairman. The company went public in May through a merger with Altman’s SPAC, AltC Acquisition Corp., and now boasts a market capitalization of $2.33 billion.
Switch, a privately held data center operator, has been valued at $40 billion in a potential IPO, according to Reuters. This partnership with Oklo aligns with Switch’s commitment to sustainable energy as it prepares for possible public market scrutiny.
Demand for Nuclear Power Grows in the AI Era
The demand for nuclear power in the U.S. is surging as technology companies look for reliable, carbon-free energy sources to power data centers and AI applications.
Amazon and Alphabet recently announced investments in small nuclear reactor technology, while Microsoft is helping revive the Three Mile Island nuclear power plant through a PPA. The partnership between Oklo and Switch reflects this growing trend, signaling that advanced nuclear technology could play a pivotal role in meeting the energy demands of the digital age.
Challenges and Opportunities
Despite its bold vision, Oklo has yet to deploy its first reactor. The company plans to bring its inaugural plant online at Idaho National Laboratory in 2027. Achieving the 12-gigawatt goal by 2044 will require overcoming regulatory, technological, and operational hurdles.
However, Oklo CEO Jacob DeWitte remains optimistic. “This framework creates a vehicle to advance large-scale, multi-site power development and deployment,” he told CNBC, emphasizing the potential to revolutionize nuclear energy for commercial use.
The Road Ahead for Oklo and Switch
As Oklo and Switch prepare to execute their framework agreement, the partnership highlights the evolving energy landscape and the pivotal role of nuclear power in supporting sustainable growth. With data center operators and tech giants investing in clean energy, this collaboration could set a precedent for the widespread adoption of advanced nuclear technology.
