Nuclear power startup Oklo (OKLO) has reached an agreement with data center company Switch for nuclear plants generating 12 gigawatts of power by 2044. Its agreement will have it sell the energy from these plants to Switch, powering the company’s data centers. It will do so by building micro nuclear reactors across the U.S.
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Oklo aims to power the Switch data centers with its 50-megawatt micro nuclear reactors. Based on the expected 12 gigawatts of power, the company will deploy 240 of them. These reactors are much smaller than the typical U.S. nuclear reactor, which generates 1,000 megawatts.
Investors will note that the deal between Oklo and Switch is nonbinding. The plan has Oklo agreeing to sign smaller power purchase deals with Switch as it progresses. None of those have been signed yet and Oklo has yet to deploy one of its reactors.
How This Affects OKLO Stock
News of Oklo’s power agreement with Switch has shares of the company’s stock up 12.04% as of this writing. This builds on a 3.35% rally when markets closed yesterday and its 80.87% increase year-to-date.
Today’s news shows there’s strong interest in the micro nuclear reactors created by Oklo. That’s a positive sign for the stock as the U.S. has been shifting toward nuclear power solutions. Oklo is preparing to deploy the first of its micro nuclear reactors in 2027. It will be used by the Idaho National Laboratory in Idaho Falls.
There’s major potential to power data centers with nuclear energy as demand for the facilities increases. That’s due to the ongoing artificial intelligence (AI) boom. This has more data center operators using their resources to power AIs. It bears mentioning that Oklo is backed by OpenAI CEO Sam Altman.
Is OKLO Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Oklo is Moderate Buy based on one Buy and one Hold rating over the last three months. With that comes an average price target of $10. This represents a potential 47.64% downside for OKLO shares.
