Switch: Courtesy
The Key Takeaways
- Oklo announced its partnership with Switch, the data center company on Wednesday. Stocks of Oklo rose after the news, but then fell in trading late morning.
- The sides reached a "framework" agreement for Oklo to provide Switch's data centers with 12 gigawatts of power over the next two decades.
- The deal joins tech's recent push into nuclear energy as tech giants like Amazon and Microsoft look to find power for their growing data centers.
Oklo, an energy-related startup that specializes in nuclear power, announced on Wednesday a partnership with Switch, which is a provider of data centers for the cloud industry and Artificial Intelligence (AI).
Investors digested news and the stock fluctuated wildly. Recently, the stock rose less than 1 percent to around $19 from near $23 earlier in trading.
The sides announced a power agreement for Oklo's nuclear "powerhouses" to provide 12 gigawatts of power to Switch's data centers over the next two decades. The companies called it a "framework for collaboration," and said smaller individual agreements will likely be announced later as the projects reach certain milestones. Financial details were not included in the companies' statement.
"We believe that working with Switch will not only accelerate our early powerhouses but also accelerate our ability to scale by demonstrating customer demand for decades to come," Oklo co-founder and CEO Jacob DeWitte said in a statement.
Oklo is in the progress of receiving the required regulatory approvals to build its first "powerhouse," and in its shareholder letter last month said it expects the first one, set to be built in Idaho, to be online by 2027.
A number of major tech firms have been betting on nuclear energy over the past few months. Amazon (AMZN), Alphabet, the parent company of Google (GOOGL) and Microsoft (MSFT), for example, signed contracts to use nuclear power plants in some data center operations. Regulators have questioned whether these deals will increase energy costs for nearby residents.
Oklo’s shares are up 80% in the past year, as nuclear deals and big tech announcements have helped lift it along with other stocks.
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