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Nuclear stock Oklo jumps on data center partnership

Published 11/13/2024, 09:05 AM
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Investing.com -- Shares of Oklo surged more than 10% in premarket trading after the nuclear power company announced partnerships with two major U.S. data center providers.

Oklo, known for its advanced fission power and nuclear fuel recycling technology, secured Letters of Intent (LOIs) to supply up to 750 megawatts (MW) of low-carbon power to data centers nationwide.

The deal is said to increase the company's customer pipeline to approximately 2,100 MW, reflecting significant demand for its clean energy solutions.

The company explained in its press release that the agreements will enable it to deliver sustainable, resilient energy for one of the country’s fastest-growing data center companies.

By deploying its “powerhouses” in key U.S. markets, Oklo aims to address the data centers’ need for consistent, eco-friendly power. The new partnerships also expand Oklo’s footprint, which already includes operational sites in Idaho, Ohio, Texas, and Wyoming.

Oklo’s Aurora powerhouses, which can generate 15 MW or 50 MW per unit, are designed for on-site or nearby power generation, enabling data centers to scale energy capacity in phases.

The phased deployment is said to reduce project risks, lower financing costs, and ensure reliable energy supply for data centers and other commercial clients.

Oklo CEO Jacob DeWitte noted the strong response from customers, saying, “Our approach helps enable customers to scale sustainably with reliable power aligned to their long-term goals.”

By building, owning, and operating each powerhouse, Oklo retains control over power generation while selling electricity to clients, creating a steady revenue stream.

The model also eases adoption of nuclear energy, allowing data centers to minimize their reliance on traditional grids, potentially reducing costs for local ratepayers.

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