In a pivotal strategic move signaling the escalating energy demands of artificial intelligence, Meta has unveiled a series of agreements with three nuclear power developers to procure over six gigawatts of clean, reliable electricity for its burgeoning data center operations. This landmark commitment underscores a growing trend among technology giants to embrace nuclear energy as a foundational power source, capable of providing the continuous, carbon-free baseload electricity essential for training and running advanced AI models. The deals, which encompass both established nuclear generation and cutting-edge small modular reactor (SMR) technology, represent a multi-faceted approach to address the intensifying power requirements of the digital age.

The Power-Hungry Era of AI

The rise of artificial intelligence has fundamentally reshaped the energy landscape for technology companies. AI workloads, particularly the training of large language models and the extensive inference processes, are extraordinarily power-intensive, relying on vast arrays of specialized graphics processing units (GPUs) that consume immense amounts of electricity around the clock. Unlike traditional computing tasks, AI requires uninterrupted, high-quality power to prevent costly interruptions and maintain computational integrity. This relentless demand has led to a projected doubling or even tripling of data center energy consumption in the coming decade, placing unprecedented strain on existing electrical grids and challenging corporate sustainability goals.

For years, major tech companies like Meta have championed renewable energy sources such as wind and solar, often investing heavily in power purchase agreements (PPAs) to match their electricity consumption with clean generation. While these intermittent sources play a crucial role in decarbonization, their variability poses a significant challenge for 24/7 operations like data centers. The need for constant uptime and stable power delivery has pushed the industry to re-evaluate its energy procurement strategies, leading many to consider dispatchable, carbon-free options that can operate continuously, regardless of weather conditions or time of day. This re-evaluation has placed nuclear power firmly back in the spotlight.

A Strategic Pivot to Nuclear Energy

Meta’s recent announcement marks a significant acceleration of its shift towards nuclear power, a direction increasingly favored by its peers in the tech sector. This pivot is not entirely new; major technology firms have been exploring nuclear options for some time, recognizing its potential to deliver consistent, emissions-free electricity at scale. The company’s proactive engagement follows a request for proposals (RFP) issued in December 2024, in which Meta sought partners capable of adding between one to four gigawatts of generating capacity by the early 2030s. The overwhelming response and subsequent deals illustrate both the urgency of Meta’s power needs and the readiness of the nuclear industry to meet this demand.

Historically, nuclear power in the United States experienced a boom in the mid-20th century, providing a significant portion of the nation’s electricity. However, incidents like Three Mile Island in 1979 and Chernobyl in 1986, coupled with rising construction costs and public opposition, led to a prolonged period of stagnation and decline. In recent years, a confluence of factors—including climate change concerns, energy security imperatives, and technological advancements—has sparked a global "nuclear renaissance." This resurgence is particularly notable in the development of small modular reactors (SMRs), which promise enhanced safety features, reduced construction times, and greater flexibility compared to traditional large-scale reactors. Meta’s strategy expertly bridges this historical gap, blending the proven reliability of existing plants with the innovative potential of next-generation SMRs.

Leveraging Established and Emerging Technologies

Meta’s energy strategy is a testament to pragmatism, balancing immediate power needs with long-term technological bets. The agreements span a spectrum of nuclear solutions: a substantial capacity purchase from Vistra, an established energy company operating existing nuclear reactors, and forward-looking partnerships with Oklo and TerraPower, two innovative startups specializing in SMR development. This diversified approach mitigates risk while fostering innovation.

The bulk of the newly secured power will be channeled into the PJM Interconnection, one of the largest electricity markets in North America, covering 13 Mid-Atlantic and Midwestern states. This region has become a hotbed for data center development, leading to increasing grid saturation and a pressing need for additional, reliable generation capacity. Meta’s investment in these regions is poised to alleviate some of this pressure while securing a stable energy future for its operations.

Vistra: Immediate Baseload and Capacity Expansion

The most immediate impact on Meta’s energy portfolio will come from its 20-year agreement with Vistra, a major player in the U.S. energy market. Under this arrangement, Meta will acquire a substantial 2.1 gigawatts of power from two of Vistra’s operational nuclear power plants in Ohio: Perry and Davis-Besse. These facilities represent the backbone of the traditional nuclear fleet, providing consistent, high-capacity electricity that is among the most cost-effective forms of baseload generation currently available on the grid.

Beyond simply purchasing existing capacity, the deal also includes provisions for Vistra to enhance the output of these Ohio plants, as well as its Beaver Valley power plant in Pennsylvania. These strategic upgrades are projected to yield an additional 433 megawatts of power, with new capacity expected to come online in the early 2030s. This component of the agreement highlights a crucial aspect of Meta’s strategy: not just securing power, but actively contributing to the expansion and modernization of existing infrastructure to meet future demand. Leveraging proven assets provides a degree of certainty and cost predictability that is invaluable in long-term energy planning for critical infrastructure like data centers.

Oklo: Betting on Advanced Microreactors

Venturing into the more speculative, yet potentially transformative, realm of advanced nuclear technology, Meta has committed to purchasing 1.2 gigawatts from Oklo, a startup at the forefront of microreactor development. Oklo’s Aurora Powerhouse reactors are designed to be compact, modular, and factory-built, promising advantages in terms of cost, scalability, and deployment speed. Each Aurora reactor is designed to produce approximately 75 megawatts of electricity, meaning Oklo would need to construct over a dozen units to fulfill Meta’s substantial order. These reactors are slated for development in Pike County, Ohio, a region strategically located within the PJM service territory.

Oklo’s journey has been marked by both promise and regulatory hurdles. The company went public via a special purpose acquisition company (SPAC) in 2023, attracting investor interest in its innovative approach to nuclear power. While it has secured other significant agreements, including a large power deal with data center operator Switch, Oklo has faced challenges in obtaining full design approval from the Nuclear Regulatory Commission (NRC). The NRC’s rigorous approval process is designed to ensure the highest safety standards for nuclear facilities, but it can also lead to protracted timelines and significant development costs for novel reactor designs. Meta’s substantial investment provides a critical lifeline and validation for Oklo, potentially accelerating its path to commercial deployment and demonstrating the viability of its technology if it can deliver on its ambitious timeline of supplying power as early as 2030.

TerraPower: Pioneering Next-Generation Designs

Another key partner in Meta’s nuclear initiative is TerraPower, a startup co-founded by Microsoft founder Bill Gates. TerraPower is developing a unique sodium-cooled fast reactor known as the Natrium reactor, which incorporates an innovative molten salt energy storage system. This design allows the reactor to generate a consistent 345 megawatts of electricity, with the added flexibility of storing an additional 100 to 500 megawatts in superheated salt for over five hours when demand is low. This storage capability is particularly attractive for grid stability, allowing for efficient load following and increased resilience.

TerraPower has generally navigated the NRC process more smoothly than some of its peers, partly due to its collaborative approach with established industry players like GE Hitachi. The company is already working on its first demonstration plant in Wyoming, providing a tangible pathway for its technology. For Meta, TerraPower’s initial commitment involves providing 690 megawatts from two reactors, with an option to purchase an additional six units, potentially bringing the total nuclear capacity to 2.8 gigawatts and an extra 1.2 gigawatts of energy storage. With an anticipated start date for electricity delivery as early as 2032, TerraPower represents a significant investment in advanced, flexible nuclear technology that could redefine baseload power generation for the future.

Market Validation and Industry Implications

Meta’s multi-gigawatt commitment to nuclear power sends a powerful signal across the energy sector and beyond. For the nascent SMR industry, this represents a monumental vote of confidence, potentially unlocking further investment and accelerating the development and deployment of these advanced technologies. The hypothesis that mass manufacturing can significantly reduce the cost of SMRs remains largely untested, but Meta’s deal provides a critical opportunity for companies like Oklo and TerraPower to prove this concept at scale. The financial terms of these deals were not disclosed, but industry observers anticipate that Meta is likely paying a premium for the guaranteed, clean, and reliable power that nuclear energy provides, especially for unproven SMR technologies where initial "first-of-a-kind" (FOAK) costs are typically higher.

The market impact extends to the broader energy landscape. Such substantial demand from a single enterprise like Meta can influence regional energy prices, incentivize grid modernization, and drive innovation in power generation. Data centers are no longer just consumers but increasingly active participants in shaping energy infrastructure. Furthermore, this move highlights the critical importance of power availability and reliability as a primary determinant for future data center site selection, potentially shifting investment and development towards regions with robust and dispatchable energy sources.

Navigating the Future of Energy and AI

While the economic benefits and the promise of carbon-free energy are clear, the expansion of nuclear power, particularly through new SMR designs, also entails challenges. Regulatory complexities, public perception issues surrounding nuclear waste and safety, and the long lead times for construction and approval remain significant hurdles. However, the urgency of climate goals and the insatiable power appetite of AI are compelling technology leaders to push these boundaries.

Meta’s ambitious foray into nuclear power is more than just an energy procurement strategy; it’s a profound statement about the future trajectory of technology and sustainability. By investing in a diverse portfolio of nuclear solutions, Meta is not only securing its operational future but also actively participating in the evolution of energy infrastructure. This move underscores a broader societal shift towards recognizing nuclear energy as an indispensable component of a resilient, decarbonized, and technologically advanced future. As AI continues its exponential growth, the symbiotic relationship between advanced computing and reliable, clean power will only deepen, making Meta’s atomic ambition a bellwether for the decades to come.