Sam Altman-backed Oklo signs power deal with data center operator

(Reuters) – Sam Altman-backed nuclear startup Oklo Inc ( OKLO ) said on Wednesday it has signed a non-binding agreement to supply power to Las Vegas-based data center operator Switch.

According to the agreement, Oklo will develop nuclear reactors, called the Aurora power plant, with a total capacity of 12 gigawatts until 2044.

Each Aurora Powerhouse reactor has a maximum power level of 15 megawatts of electricity, according to the US Nuclear Regulatory Commission.

Nuclear energy, which is nearly carbon-free and considered more reliable than other energy sources such as solar and wind, has emerged as a popular energy source amid a worldwide push toward net-zero carbon emissions.

Several US utilities are signing deals with big tech companies like Microsoft and Amazon to power their data centers with electricity generated from nuclear power plants.

Shares of Oklo rose nearly 12% to $21.41 before the bell.

“The timescale of this master agreement underscores Switch and Oklo’s commitment to meeting AI’s growing electricity needs with clean, sustainable power,” Oklo said.

Switch operates several renewable energy-powered data centers across the U.S. and counts companies such as Nvidia ( NVDA ), FedEx ( FDX ), Alphabet’s ( GOOG ) Google, and PayPal ( PYPL ) among its customers.

Oklo, which went public in May through a merger with Altman’s blank check company, aims to develop its first small modular nuclear reactor by 2027.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)