Oklo and Switch Form Landmark Strategic Relationship to Deploy 12 Gigawatts of Advanced Nuclear Power, One of the Largest Corporate Clean Power Agreements Ever Signed

Rhea-AI Summary

Oklo (NYSE: OKLO) and Switch have signed a non-binding Master Power Agreement for 12 gigawatts of advanced nuclear power deployment through 2044, marking one of the largest corporate clean power agreements in history. Under the agreement, Oklo will develop, construct, and operate Aurora powerhouses to provide power to Switch's AI, cloud, and enterprise data centers across the United States.

The partnership aims to support Switch's growing data center infrastructure while maintaining their commitment to 100% renewable energy usage. The agreement establishes a framework for collaboration, with binding agreements to be finalized as project milestones are reached. This long-term partnership will help accelerate Oklo's early powerhouse deployments and demonstrate sustained customer demand.

Positive

• Secured landmark 12GW power agreement through 2044
• Partnership with major data center provider strengthens market position
• Agreement demonstrates long-term customer demand for advanced nuclear power
• Business model focuses on selling power rather than power plants, potentially leading to recurring revenue

Negative

• Master Agreement is non-binding
• Final agreements dependent on reaching future project milestones
• Long deployment timeline through 2044 indicates delayed revenue recognition

Insights

Energy Infrastructure Analyst

This landmark agreement represents a significant shift in corporate power procurement strategies. The 12 gigawatt non-binding agreement between Oklo and Switch is particularly noteworthy for its scale and duration, extending through 2044. The deal structure, focusing on power purchase rather than plant sales, reduces capital requirements for Switch while providing Oklo with long-term revenue visibility. This model could become a blueprint for future advanced nuclear deployments in the data center industry. The timing aligns perfectly with the exponential growth in power demands from AI infrastructure, addressing a critical market need. However, execution risks remain significant given the early stage of Oklo's technology and the complex regulatory landscape for nuclear deployments.

Data Center Industry Analyst

This agreement signals a major shift in data center power sourcing strategies, particularly for AI-focused facilities. Switch's commitment to 12GW of nuclear power demonstrates the massive scale of anticipated AI computing power requirements. The deal provides Switch with a potential competitive advantage in the rapidly growing AI infrastructure market, while maintaining their commitment to sustainability. The long-term nature of the agreement through 2044 suggests confidence in sustained AI infrastructure growth. However, the non-binding nature of the master agreement leaves flexibility for both parties, which is important given the emerging nature of both advanced nuclear technology and AI infrastructure scaling requirements.

Financial Analyst

The master agreement represents a significant commercial validation for Oklo's business model and technology approach. While non-binding, the scale and scope of the agreement could provide Oklo with substantial revenue visibility and help secure project financing for initial deployments. The power purchase agreement (PPA) structure aligns with typical project finance models, potentially enabling efficient capital deployment. For Switch, the agreement helps hedge long-term power costs while supporting their sustainability goals. The market size implication is substantial - 12GW represents approximately $100-150 billion in potential project value based on current nuclear power plant costs, though actual values will depend on final binding terms.

• Oklo and Switch have signed one of the largest corporate power agreements in history, a 12-gigawatts non-binding Master Power Agreement.
• This milestone agreement demonstrates a shared commitment to advancing sustainable energy solutions, supporting data center growth, and driving industry-wide decarbonization.
• Oklo’s Aurora powerhouses will provide reliable, clean energy for Switch’s cutting-edge AI, cloud, and enterprise data center infrastructure.

SANTA CLARA, Calif.--(BUSINESS WIRE)-- Oklo Inc. (NYSE: OKLO) (“Oklo” or the “Company”), an advanced nuclear technology company, and Switch, a premier provider of AI, cloud and enterprise data centers, have signed a non-binding Master Power Agreement (“Master Agreement”) to deploy 12 gigawatts of Oklo Aurora powerhouse projects through 2044. This is one of the largest corporate clean power agreements ever signed. The Master Agreement establishes a framework for collaboration, with the expectation that individual binding agreements will be finalized as project milestones are reached.

Image: Oklo and Switch

Under the Master Agreement, Oklo will develop, construct, and operate powerhouses to provide power to Switch across the United States through a series of power purchase agreements. This enduring relationship over several decades will help accelerate Oklo’s early powerhouse deployments and also position the Company to scale in response to a growing demand pipeline. This Master Agreement enables Oklo to leverage Switch’s best-in-class execution while developing the financial and infrastructure model for scaling advanced nuclear.

The timescale of this Master Agreement underscores Switch and Oklo’s commitment to meeting artificial intelligence’s growing electricity demands with clean, sustainable power. The Company believes that Switch’s industry-leading data centers, which support the computing needs of some of the world’s largest companies, are ideally positioned to handle AI workloads well into the future.

“The relationship with Oklo underscores our commitment to deploying advanced nuclear power at a transformative scale for our data centers, further enhancing our offerings of one of the world’s most advanced data center infrastructures to current and future Switch clients,” said Rob Roy, Founder and CEO of Switch. “By utilizing Oklo’s powerhouses, we aim to ensure that Switch remains the leader in data center sustainability while supporting our vision of energy abundance.”

Since January 2016, all Switch data centers have been powered by 100% renewable energy, nearly 984 million kilowatt-hours of green power annually. This Master Agreement with Oklo supports Switch’s mission to build efficient, sustainable infrastructure while bolstering the voluntary market for renewable and clean energy sources.

“We are excited to collaborate with Switch on this historic agreement,” said Jacob DeWitte, Co-Founder and CEO of Oklo. “Rob Roy and the Switch team share the vision we have for nuclear energy’s role in powering artificial intelligence and providing the world with energy abundance. Oklo expects to benefit enormously from Switch’s record of turning visions into reality. The lifespan of this Master Agreement will allow us to iterate and evolve with Switch, from development to deployment to scaling. 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.”

This Master Agreement highlights Oklo’s business model of simplifying clean energy access by selling power, not power plants. It offers customers a direct, flexible pathway to clean, reliable, and affordable advanced nuclear energy. Aurora powerhouses are planned to support growing energy demands as they are deployed in the future.

About Switch: Switch, founded in 2000 by CEO Rob Roy, stands at the forefront as the leading data center campus designer, builder and operator. As the AI, cloud and enterprise data center experts, Switch provides the most modular, scalable and sustainable data centers to the most discerning clients. The company offers a comprehensive, future-proof portfolio ranging from highly dense liquid cooled AI to hyperscale cloud and the industry’s highest rated and most-secure enterprise data centers. To learn more, visit www.switch.com and follow Switch on LinkedIn, Facebook and X.

About Oklo Inc.: Oklo Inc. is developing advanced nuclear power plants that run on nuclear waste to provide clean, reliable, and affordable energy at scale. Oklo received a site use permit from the U.S. Department of Energy, was awarded fuel material from Idaho National Laboratory, submitted the first advanced fission custom combined license application to the U.S. Nuclear Regulatory Commission, and is developing advanced fuel recycling technologies in collaboration with the U.S. Department of Energy and U.S. National Laboratories.

Forward-Looking Statements

This press release includes statements that express Oklo’s opinions, expectations, objectives, beliefs, plans, intentions, strategies, assumptions, forecasts or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” or, in each case, their negative or other variations or comparable terminology, and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning, among other things, the timing, goals and benefits of the Master Agreement, results of operations, financial condition, liquidity, prospects, growth, strategies and the markets in which Oklo operates. Such forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties.

As a result of a number of known and unknown risks and uncertainties, the actual results or performance of Oklo may be materially different from those expressed or implied by these forward-looking statements. The following important risk factors could affect Oklo’s future results and cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: risks related to the deployment of Oklo’s powerhouses; the risk that Oklo is pursuing an emerging market, with no commercial project operating, regulatory uncertainties; the potential need for financing to construct plants, market, financial, political and legal conditions; the effects of competition; changes in applicable laws or regulations; the risk that the Master Agreement fails to produce the expected benefits; and the outcome of any government and regulatory proceedings and investigations and inquiries.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties of the other documents filed by Oklo from time to time with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this press release and in any document incorporated by reference are based on current expectations and beliefs concerning future developments and their potential effects on Oklo. There can be no assurance that future developments affecting Oklo will be those that Oklo has anticipated. Oklo undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218939186/en/

Media and Investor Contact for Oklo:

Bonita Chester, Head of Communications and Media at media@oklo.com

Investor Contact:

Sam Doane, Director of Investor Relations at investors@oklo.com

Source: Oklo Inc.

FAQ

What is the size and duration of Oklo's power agreement with Switch?

Oklo signed a 12-gigawatt non-binding Master Power Agreement with Switch, extending through 2044, to provide power for Switch's data centers across the United States.

How will Oklo's Aurora powerhouses benefit Switch's operations?

Oklo's Aurora powerhouses will provide reliable, clean energy for Switch's AI, cloud, and enterprise data center infrastructure, supporting their commitment to 100% renewable energy usage.

What are the key terms of the Oklo-Switch Master Power Agreement?

The agreement establishes a framework for collaboration, with binding agreements to be finalized as project milestones are reached. Oklo will develop, construct, and operate powerhouses to provide power to Switch.

How does this agreement impact Oklo's business strategy?

The agreement supports Oklo's business model of selling power rather than power plants, helps accelerate early powerhouse deployments, and demonstrates long-term customer demand for their services.

What is Switch's current renewable energy usage and how will Oklo affect it?

Switch has been powered by 100% renewable energy since January 2016, using nearly 984 million kilowatt-hours of green power annually. Oklo's advanced nuclear power will help maintain this commitment while supporting growth.