Meta Invests US$14 Billion in Next-Gen Nuclear Reactors

Meta Platforms Inc. has announced plans to invest over US$14 billion in new nuclear reactors to support its data centres. This investment will be directed towards next-generation nuclear companies, Oklo Inc. and TerraPower LLC, which aim to deliver a total of approximately 1.89 gigawatts of fission capacity over the next decade, according to estimates from BloombergNEF.

The deal includes 690 megawatts of capacity from TerraPower and 1.2 gigawatts from Oklo. Despite the ambitious plans, neither company currently holds regulatory approval to build commercial systems, nor have they demonstrated their ability to produce power at a commercial scale.

As electricity demand in the United States continues to rise, the technology industry is increasingly turning to nuclear energy. This trend underscores the urgent need for reliable power sources, particularly for data centre operators. Next-generation reactors promise a stable, carbon-free energy supply, although they are expected to be costly and complex to build in their early phases.

Both companies are focused on developing smaller reactors that aim to improve the efficiency of existing large conventional nuclear plants. Oklo’s initial systems at its Ohio site could begin generating power by 2030, while the first two projects from TerraPower under the Meta agreement may be completed by 2032.

Chris Gadomski, lead nuclear analyst at BloombergNEF, noted the historically unreliable nature of early cost estimates and timelines in the nuclear sector. “In the nuclear world, at least in North America and Europe, initial cost estimates and schedules typically fall well below actual expenditures and well behind actual targets,” he explained.

Oklo’s plans include a 75-megawatt reactor and a larger 1.2-gigawatt campus in Ohio, which will require the construction of 16 reactors. Gadomski estimates that each will cost between US$350 million and US$400 million. A gigawatt can typically power around 750,000 homes in the United States.

While an Oklo spokesperson declined to comment on the budget specifics, they stated via email that the full initiative represents a “multi-billion dollar infrastructure project.” Meta has also refrained from commenting on the financial details of the agreements.

The collaboration with TerraPower is designed to support two 345-megawatt reactors, with the potential to source power from as many as six additional units. Gadomski estimates the initial units will cost around US$4 billion each, although he anticipates these costs could decrease significantly as TerraPower gains experience in building these facilities. Jeff Miller, Senior Vice President of Business Development at TerraPower, expressed optimism, stating that the target price could eventually drop to approximately US$1 billion per unit.

In addition to these new projects, Meta has also agreed to purchase power from three existing conventional reactors operated by Vistra Corp. in Ohio and Pennsylvania. The agreements, including one made in June, position Meta as one of the largest advocates for fission power in the technology sector, reflecting its financial strength and willingness to invest in emerging nuclear technologies.

Researchers at ClearView Energy Partners highlighted Meta’s unique position in the industry, noting that the company has established itself as a leader among technology firms with the financial resources and risk tolerance to pursue advanced reactors.