The company Oklo, developer of compact nuclear reactors and nuclear fuel recycling technology, has signed a framework energy supply agreement with data center provider Switch. This non-binding agreement aims to deliver up to 12GW of nuclear power to Switch by 2044.
Under the terms of the agreement, Oklo will develop, build, and operate an undisclosed number of its Aurora Powerhouse reactors. Power will be supplied through a series of long-term power purchase agreements (PPAs), with individual binding agreements to be defined as milestones are reached for each project.
Boosting Clean and Sustainable Energy
Switch, recognized for its highly efficient and sustainable data centers, seeks to strengthen its commitment to renewable and clean energy through this partnership.
“The relationship with Oklo reinforces our mission to implement advanced nuclear energy at a transformative scale in our data centers, thereby consolidating one of the most advanced data centersA data center or data processing center (DPC) … in the world,” stated Rob Roy, founder and CEO of Switch.
Meanwhile, Jacob DeWitte, co-founder and CEO of Oklo, emphasized that the longevity of the agreement will allow Oklo to expand its financial model and infrastructure:
“This agreement will allow us to evolve alongside Switch, from development to implementation and scaling. Working with Switch will accelerate both our initial plants and our expansion capability.”
The Aurora Powerhouse Technology
Oklo’s Aurora Powerhouse reactor is a fast neutron reactor that uses metallic fuel. It has a capacity ranging from 15MW to 50MW, making it ideal for modular deployment in critical infrastructures like data centers.
Oklo plans to commission its first reactor in 2027 at the Idaho National Laboratory (INL). Additionally, it recently received approval from the U.S. Department of Energy (DOE) for its conceptual design report for a fuel manufacturing plant that will supply low-enriched uranium to its future facilities.
Nuclear Power and Data Centers: A Growing Trend
The agreement with Switch is Oklo’s fifth signed with a data center provider in 2024, adding to a client portfolio that exceeds 14GW of capacity. Other notable agreements include:
- Equinix: 500MW signed in April.
- Prometheus Hyperscale: agreement for 100MW in May.
- Other undisclosed operators: an additional 750MW last month.
This partnership reflects the increasing adoption of small modular reactors (SMRs) by the data center sector as a solution to meet the energy demand of critical operations and reduce carbon emissions.
Challenges and the Future of Oklo
Despite its progress, Oklo has faced challenges. Last year, the U.S. Air Force canceled a $100 million award for a microreactor, and approval of its designs by the Nuclear Regulatory Commission (NRC) is still pending.
However, the alliance with Switch adds to other significant agreements in 2024 between SMR providers and tech companies:
- AWS signed agreements with Energy Northwest and Dominion Virginia to deploy over 600MW.
- Google committed to purchasing energy from multiple SMRs from Kairos Power, with deployment planned for 2030.
Conclusion
The agreement between Oklo and Switch strengthens the role of modular nuclear energy as a viable and sustainable alternative for data centers, which increasingly demand more power to operate efficiently. As the sector moves toward clean energy solutions, this collaboration underscores the potential of SMRs to provide safe, reliable, and scalable energy in the long term.
Via: DCD