Meta Platforms (META) is exploring nuclear energy as a sustainable power source for its U.S. data centers. This move comes in response to the rising demand for artificial intelligence (AI), which requires massive computing power. The company aims to secure up to 4 gigawatts of new nuclear energy capacity by early 2030 to support its expanding data centers and AI initiatives.
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Meta is open to proposals for both large reactors and emerging small modular reactors (SMRs). Also, the company is looking for developers who can manage projects and ensure they meet regulatory requirements. Moreover, Meta is willing to share costs in the early development phases to accelerate the deployment of new nuclear power plants.
Meta Joins Other Tech Giants to Tap Nuclear Power
Meta’s interest in nuclear energy aligns with the growing trend among tech giants seeking sustainable energy sources for their data centers. Notably, Amazon (AMZN) and Alphabet (GOOGL) have invested in companies developing advanced nuclear reactor technologies. Additionally, Microsoft (MSFT) has teamed up with Constellation Energy (CEG) to restart a nuclear reactor at Three Mile Island.
Although nuclear power offers a low-carbon energy alternative, it presents several challenges, such as high upfront costs and complex regulatory hurdles. However, Meta’s focus on long-term partnerships and its willingness to share costs could help address these headwinds.
Is Meta a Buy or Sell?
Turning to Wall Street, META has a Strong Buy consensus rating based on 40 Buys, three Holds, and one Sell assigned in the last three months. At $662.62, the average Meta Platforms price target implies a 7.98% upside potential. Shares of the company have gained about 74% year-to-date.
