A massive agreement between Oklo and Switch could bring 12 gigawatts of electricity to the tech giant’s data centers.
Oklo, a nuclear startup backed by Sam Altman, has signed a significant deal with data center operator Switch. Under the agreement, Oklo would build and operate small modular reactors (SMRs) to generate electricity for Switch’s data centers. The SMRs would produce 15 megawatts of electricity initially, ramping up to 50-100 megawatts.
The Agreement in Detail
Oklo plans to deliver dozens to hundreds of its SMR power plants by 2044. The company wants to bring its first reactor online in 2027, but the Nuclear Regulatory Commission (NRC) approval process tends to be lengthy. Oklo’s previous application was denied nearly two years after it was first submitted.
The agreement between Oklo and Switch is not binding, and much depends on Oklo’s ability to secure NRC approval. If that happens, the company then has to deliver its SMR power plants according to the agreed timeline.
Oklo’s Previous Application
In 2022, Oklo’s previous application for NRC approval was denied. The company plans to resubmit a new application in 2025, hoping that new legislation taking effect next year will speed up the process.
New Legislation and Its Impact
The upcoming legislation aims to streamline the NRC approval process for nuclear projects. If passed, it could potentially expedite Oklo’s application and reduce the time required for approvals.
Competitors and Alternatives
Oklo faces stiff competition from other nuclear startups, including Kairos, which has already received NRC approval and has a deal with Google to supply its data centers with electricity. Renewable power projects and grid-scale batteries also pose significant competition to Oklo’s SMR technology.
Renewable Power and Grid-Scale Batteries
Google recently announced a renewable power deal worth $20 billion, which includes solar, wind, and batteries. The first phase of the project is expected to be operational by 2026, highlighting the growing importance of renewable energy in the data center market.
The Future of Nuclear Power
Oklo’s SMR technology offers several advantages over traditional nuclear power plants, including reduced construction time, lower costs, and improved safety. However, the company still needs to overcome significant regulatory hurdles before it can deploy its technology on a large scale.
Conclusion
The agreement between Oklo and Switch is a significant development in the nuclear startup’s efforts to bring its SMR technology to market. While the deal has caveats, it highlights the growing importance of innovative energy solutions for data centers and other power-hungry industries.
Timeline
- 2025: Oklo plans to resubmit its NRC application
- 2027: Oklo aims to bring its first reactor online
- 2044: Oklo expects to deliver dozens to hundreds of its SMR power plants
Key Players
- Oklo: A nuclear startup backed by Sam Altman, building and operating small modular reactors (SMRs)
- Switch: A data center operator that will receive electricity from Oklo’s SMRs
- Kairos: A nuclear startup with NRC approval and a deal with Google to supply its data centers with electricity
Sources
- [1] Tim De Chant, Senior Reporter, Climate (TechCrunch)
- [2] Kairos website
- [3] Google press release