In a landmark move for both the technology and energy sectors, Meta Platforms Inc. has positioned itself as the most significant corporate buyer of nuclear power in American history. The parent company of Facebook and Instagram announced a series of major electricity procurement agreements on Friday, 9 January, specifically to power its expanding network of data centres crucial for artificial intelligence development.
The Nuclear Power Play: Securing AI's Energy Future
The technology giant has entered into contracts to purchase electricity from three existing nuclear plants operated by Vistra Corp. Furthermore, Meta will back the development of next-generation small modular reactors (SMRs) by Oklo Inc., which is supported by Sam Altman, and TerraPower LLC, backed by Bill Gates. These new pacts build upon a separate agreement made in June to source energy from a Constellation Energy Corp. nuclear facility.
In an official statement, Meta emphasised the strategic importance of this shift. "Our agreements with Vistra, TerraPower, Oklo, and Constellation make Meta one of the most significant corporate purchasers of nuclear energy in American history," the company declared. It highlighted that advanced data centres and AI infrastructure are vital for maintaining America's global leadership in AI. The company believes nuclear energy will be fundamental to powering the AI future, strengthening national energy infrastructure, and delivering clean, reliable electricity.
The social media behemoth also pointed to significant economic and infrastructural benefits, stating these projects will "create thousands of skilled jobs in Ohio and Pennsylvania, add new energy to the grid, extend the life of three existing nuclear plants, and accelerate new reactor technologies."
Scale, Impact, and the Big Tech Energy Rush
The collective capacity of these agreements may surpass a staggering 6 gigawatts (GW), which is reportedly enough electricity to supply approximately 5 million American homes. This massive procurement underscores the intense race among Big Tech companies to lock down reliable, large-scale power sources, a competition that remains fierce despite the rivalries within the AI sector itself.
The market reacted positively to the news. Vistra's shares jumped by 10% in pre-market trading in New York, while Oklo's stock saw a rise of around 20%. This surge reflects investor confidence in nuclear energy's pivotal role in meeting future power demands.
This trend is driven by a projected 30% increase in US power consumption by 2030, with data centres being a primary contributor, according to energy consulting firm Grid Strategies. With power suppliers struggling to keep pace, electricity access has emerged as one of the most critical bottlenecks for AI advancement. While other tech giants like Amazon, Alphabet (Google), and Microsoft have also signed nuclear power deals, Meta's latest agreements are now the most substantial.
Details of the Deals and Strategic Vision
Meta's energy strategy is directly tied to CEO Mark Zuckerberg's ambitious plan to invest hundreds of billions of dollars in AI and its underlying infrastructure by the end of this decade. Key projects driving this demand include the "Prometheus," a 1-gigawatt data centre in New Albany, Ohio, set to launch this year, and the "Hyperion" initiative in rural Louisiana, which could expand to 5 gigawatts by 2028.
The latest nuclear contracts will directly support the Ohio-based Prometheus project. Under the Vistra agreement, Meta will purchase power from the Davis-Besse and Perry reactors in Ohio, which have a combined operational capacity of over 2.1 GW. It will also receive an additional 433 megawatts from planned upgrades at these plants and the Beaver Valley facility in Pennsylvania. These Vistra plants will continue supplying the PJM Interconnection grid, serving over 67 million people.
In a forward-looking deal with Oklo, Meta secured up to 1.2 GW of capacity from reactors planned for Ohio, with the first potentially coming online by 2030. Oklo is developing a 75-megawatt reactor and the agreement includes a prepayment from Meta to help with fuel procurement. Similarly, Meta will support TerraPower's development of two reactors capable of generating up to 690 megawatts, with delivery targeted for 2032. Meta also secured rights to energy from up to six other future reactor projects totalling 2.1 GW.
This aggressive energy acquisition aligns with Zuckerberg's previously stated philosophy. He told investors that he sees greater risk in under-investing in AI infrastructure than in overspending. His strategy is to "aggressively front-load building capacity" to prepare for a future where Meta achieves its goal of developing "superintelligence"—AI that surpasses human capabilities.
