Meta bets big on nuclear energy to power its AI data centers
MENLO PARK, Calif. — Meta announced Wednesday it has signed three nuclear power agreements to supply its data centers, the latest move by a major tech company to secure the massive, 24/7 energy supplies required to fuel its artificial intelligence ambitions.
The social media giant reached deals with power plant operator Vistra and two startups, Oklo and TerraPower, which specialize in developing small modular reactors (SMRs). The agreements follow a request for proposals issued by Meta in December 2024 seeking to add 1 to 4 gigawatts of new generation capacity by the early 2030s.
A 20-year contract with Vistra will have the most immediate impact, providing 2.1 gigawatts from two existing nuclear plants in Ohio. As part of the deal, Vistra will also upgrade capacity at additional plants in Ohio and Pennsylvania.
Meta also committed to purchasing 1.2 gigawatts from Oklo and an initial 690 megawatts from TerraPower, a startup co-founded by Bill Gates. Both startups aim to begin delivering power between 2030 and 2032.
However, the SMR technology utilized by Oklo and TerraPower has not yet reached mass production and remains in the regulatory licensing process. Financial terms of the three agreements were not disclosed.
Saigon Sentinel Analysis
Meta Platforms’ recent pivot toward nuclear energy is far more than a standard procurement deal; it is a high-stakes hedge against an AI-induced energy crisis and a strategic bet on the future of the U.S. power grid. By diversifying its portfolio across established utilities like Vistra and next-generation startups such as Oklo and TerraPower, Meta is executing a sophisticated, bifurcated strategy to secure its digital future.
The agreement with Vistra addresses Meta’s immediate operational requirements, securing stable, cost-effective baseload power from existing assets to meet medium-term demand. However, it is the investments in Small Modular Reactor (SMR) pioneers Oklo and TerraPower that signal a longer-term vision. By positioning itself as a critical "anchor customer," Meta is providing the guaranteed revenue streams these startups need to de-risk their business models, attract institutional capital, and navigate the Nuclear Regulatory Commission’s (NRC) rigorous and costly licensing gauntlet.
This move establishes a significant precedent for the broader technology sector. As rivals like Google and Amazon face identical energy constraints, the industry is likely entering a "nuclear arms race" for dedicated capacity. This surge in private-sector demand will not only accelerate the commercialization of SMR technology but also intensify political pressure on federal regulators to streamline permitting for next-generation reactors. Ultimately, Big Tech is transitioning from a passive utility consumer into a primary architect of U.S. energy policy and infrastructure for the coming decade.