Meta just secured 6.6 gigawatts of nuclear capacity through groundbreaking agreements with three energy providers, marking the largest corporate nuclear commitment in American history. A lead financial expert at Nexymus breaks down why tech giants are racing to lock down atomic energy for their artificial intelligence ambitions and what this means for investors watching the AI infrastructure buildout.

The Staggering Numbers Behind the Deal

The social media company announced agreements with Vistra, TerraPower, and Oklo on Friday, sending shockwaves through energy and technology sectors simultaneously. These contracts will deliver massive power by 2035 to support Meta’s Prometheus supercluster facility. The New Albany, Ohio installation demands electricity consumption equivalent to powering several mid-sized cities continuously.

Vistra provides 2.6 gigawatts from existing nuclear plants strategically located in Ohio and Pennsylvania. That includes 2,176 megawatts from Perry and Davis-Besse facilities that have operated reliably for decades. An additional 433 megawatts comes from capacity upgrades at three separate locations, representing significant infrastructure investments.

Oklo aims to supply 1.2 gigawatts through small modular reactors that exist primarily as engineering designs rather than operating facilities. TerraPower will contribute power from sodium fast reactors using technology that has never operated commercially. The first TerraPower units won’t deliver electricity until 2032 at earliest, assuming regulatory approval and construction proceed without major delays.

The Unproven Small Modular Bet

Both Oklo and TerraPower are developing small modular reactors that promise revolutionary cost reductions through mass manufacturing. These designs hypothesize that factory production could slash expenses compared to traditional on-site construction. The hypothesis remains commercially untested despite decades of research. Meta’s deals give these startups crucial capital infusions and credibility with other potential customers.

Oklo’s Aurora Powerhouse reactors generate 75 megawatts each, requiring over a dozen individual units to fulfill Meta’s order completely. The company needs to construct and commission these reactors in Pike County, Ohio, with construction potentially beginning in 2026. First power delivery targets 2030, though virtually every nuclear project historically has experienced delays.

TerraPower brings unique backing through co-founder Bill Gates, whose wealth and reputation provide project resilience. Its Natrium technology uses liquid sodium cooling instead of traditional water systems, offering theoretical advantages in efficiency and safety. Two 345-megawatt units will serve Meta starting in 2032 or later, depending on regulatory processes and construction execution.

Strategic Implications for Tech Competition

Meta’s nuclear commitments total over 7.7 gigawatts including previous Constellation Energy agreements announced last year. That positions the company as America’s largest corporate nuclear buyer by substantial margin. The scale demonstrates serious long-term AI investment plans that extend years into the future.

Competition dynamics are shifting rapidly as rivals respond to Meta’s aggressive moves. Amazon partnered with Energy Northwest and Dominion Energy for nuclear capacity. Google signed agreements with Kairos Power for reactor development. Microsoft committed to restarting Three Mile Island’s undamaged reactor. The energy race parallels and enables the AI race that will define technology leadership.

China’s AI development adds geopolitical dimensions that extend beyond simple corporate competition. Domestic energy security supports American technological leadership in ways that offshore manufacturing never could. These nuclear deals strengthen grid reliability beyond Meta’s immediate needs, providing broader economic benefits. Thousands of construction jobs will result from facility buildouts across multiple states.

Risk Factors Investors Must Consider

Project timelines carry substantial execution risk that contracts presumably address through penalty clauses. Small modular reactors haven’t proven commercial viability yet despite confident projections. Cost targets of $50-$60 per megawatt-hour for TerraPower and $80-$130 for Oklo remain aspirational rather than demonstrated. Initial units will almost certainly exceed these figures before manufacturing curves improve.

Demand sustainability represents another critical concern that honest analysis must address. If AI proves less commercially viable than currently expected, capacity additions could prove excessive. Meta’s CEO called demand “endless” publicly but surely acknowledges uncertainty privately. Historical technology cycles suggest caution about extrapolating current trends indefinitely.

Regulatory changes could disrupt plans significantly despite the current political environment supporting nuclear development. New administrations might alter nuclear policy based on different priorities. Environmental reviews could extend construction schedules beyond contractual deadlines. Political opposition sometimes emerges at local levels even after federal approval.

The Broader Energy Transformation

These agreements signal deep confidence in AI’s trajectory despite vocalized uncertainties. Meta wouldn’t commit tens of billions without strong demand visibility from customers. The company’s conversations with enterprise clients and their customers informed these decisions. That due diligence reduces but doesn’t eliminate execution risk.

Nuclear energy’s resurgence reflects practical necessity rather than ideological preferences. Renewable intermittency fundamentally can’t support data center requirements without massive battery backup. Battery storage hasn’t scaled sufficiently to bridge multi-day weather events. Natural gas contradicts sustainability commitments that corporate boards take increasingly seriously.

Nuclear represents the only viable solution currently available that meets reliability, emissions, and scale requirements simultaneously. This realization is spreading across industries beyond technology. Manufacturing facilities, chemical plants, and other industrial users are exploring similar arrangements. The energy transformation extends far beyond AI infrastructure alone.