Data center colocation giant Equinix (Nasdaq: EQIX) has signed a pre-agreement with Sam Altman-backed small modular reactor (SMR) firm Oklo to procure up to 500 megawatts (MW) of nuclear energy. This deal marks the first time a data center company has entered into an agreement with an SMR provider.
Oklo’s innovative fast fission reactors can generate up to 15MW of power and operate for a decade or more without refueling. The company is currently in the process of merging with SPAC AltC Acquisition (NYSE: ALCC), which is expected to take Oklo public this July.
AltC was set up by OpenAI founder and Oklo chairman Sam Altman with ex-Citigroup executive Michael Klein. According to the SPAC’s SEC filing, Equinix has made a $25 million prepayment to Oklo as part of a 20-year power purchase agreement (PPA). This prepayment could potentially give Equinix a 1.5-1.9% stake in Oklo once the merger is complete.
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The agreement gives Equinix the right of first refusal for the output of certain Oklo “powerhouses” for a period of 36 months, with a minimum capacity of 100MW and a maximum of 500MW. The $25 million prepayment also provides Equinix the option to receive either Oklo stock or a discounted supply of power.
SMRs have been proposed as a sustainable energy solution for data centers, allowing these facilities to operate more independently from the local grid. SMRs could emerge as a viable low-carbon energy alternative to traditional grid-supplied power.
Also read: SMR Factories Are Coming: Holtec To Build A £600-Million Factory In The UK
Information for this story was found via Data Center Dynamics, NBC News, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
