Today, Meta disclosed three agreements aimed at powering its data centers with nuclear energy. These pacts include one with an emerging startup, another with a more modest energy firm, and a third with a prominent company already managing multiple nuclear reactors in the United States.
Oklo and TerraPower, which are firms engaged in the development of small modular reactors (SMRs), have entered into separate contracts with Meta for the construction of numerous reactors. Concurrently, Vistra is supplying power from its current operational facilities.
As tech companies’ artificial intelligence goals expand, nuclear power has emerged as a preferred energy source, offering consistent, round-the-clock electricity. Both fledgling companies and established reactor operators are gaining from the heightened demand for data center power, albeit through distinct avenues.
While operational reactors typically offer the most economical baseload capacity, their limited availability has steered Meta and similar tech giants towards SMR startups. Firms such as Oklo and TerraPower are speculating that constructing numerous smaller reactors could reduce costs through economies of scale in manufacturing. This remains a reasonable theory, though it has not yet been practically demonstrated. Meta’s agreement might provide SMR startups the opportunity to validate this concept.
These agreements stem from a request for proposals initiated by Meta in December 2024. In this request, Meta aimed to find collaborators capable of supplying 1 to 4 gigawatts of generation capacity by the early 2030s. A significant portion of this fresh energy will be distributed via the PJM interconnection, an electricity grid serving 13 Mid-Atlantic and Midwestern states, which is currently experiencing a high concentration of data centers.
The 20-year pact with Vistra is set to address Meta’s energy requirements most promptly. The technology firm plans to procure a cumulative 2.1 gigawatts from Ohio’s two operational nuclear power facilities, Perry and Davis-Besse.
Furthermore, under the terms of the agreement, Vistra will expand the capacity of these power plants, along with its Beaver Valley facility in Pennsylvania. Collectively, these enhancements are projected to produce an extra 433 MW and are slated for activation in the early 2030s.
Additionally, Meta is acquiring 1.2 gigawatts from the nascent supplier, Oklo. As per its contract with Meta, Oklo aims to begin feeding power into the grid as soon as 2030. The SMR enterprise became publicly traded via a SPAC merger in 2023, and despite securing a substantial agreement with data center provider Switch, it has faced difficulties in obtaining approval for its reactor design from the Nuclear Regulatory Commission.
Should Oklo meet its proposed schedule, the new reactors would be constructed in Pike County, Ohio. Each of the startup’s Aurora Powerhouse reactors generates 75 megawatts of electricity, meaning over a dozen will be required to satisfy Meta’s demand.
TerraPower, a startup co-founded by Bill Gates, targets delivering electricity to Meta beginning in 2032. The company has engineered a reactor that employs molten sodium for energy transfer between the reactor and generator. During periods of low demand, the superheated salt can be held in an insulated container until additional power is required. The reactor itself can produce 345 megawatts of electricity, complemented by a storage system capable of supplying an extra 100 to 500 megawatts for over five hours.
This company has progressed through the NRC approval process with greater ease and is collaborating with GE Hitachi on the construction of its initial power plant in Wyoming. The first pair of reactors destined for Meta would contribute 690 megawatts, and Meta has stated it holds options to acquire an additional six units, amounting to a grand total of 2.8 gigawatts of nuclear capacity and 1.2 gigawatts of storage.
Meta chose not to reveal the monetary specifics of these agreements.
The electricity acquired from Vistra is almost certainly the most cost-effective, given that power from already functional nuclear reactors is recognized as one of the most economical sources on the grid.
The expenses associated with SMRs remain undetermined. Several emerging companies have ambitious pricing goals: TerraPower projects costs as low as $50 to $60 per megawatt-hour, whereas Oklo aims for a range of $80 to $130 per megawatt-hour. However, these projections apply to future power plants, with initial installations expected to incur higher costs.