These nuclear power stocks are surging due to agreements with Meta

Meta Forms New Alliances with Nuclear Energy Firms to Power AI Expansion

Photo credit: Nicolas Economou / NurPhoto / Getty Images

Meta has announced new collaborations with several nuclear energy companies to support the growing energy needs of its artificial intelligence operations.

Main Highlights

• On Friday, Meta revealed it has entered into agreements with three nuclear energy providers to supply power for its data centers.
• Vistra will deliver electricity from its existing nuclear plants, while startups Oklo and TerraPower will supply power as they construct new reactors, with these projects expected to be operational in the next decade.

The announcement led to a sharp rise in nuclear energy stocks on Friday morning, following news of these significant partnerships with a major technology company.

Meta Platforms, the parent company of Facebook and Instagram, disclosed deals with Vistra Corp. (VST), as well as with Oklo (OKLO) and TerraPower, which is backed by Bill Gates. Vistra will provide immediate power from its current reactors, while the agreements with Oklo and TerraPower will assist these startups in developing their advanced, smaller-scale nuclear reactors. Meta anticipates that the new reactors from Oklo and TerraPower will begin supplying energy between 2030 and 2035.

Altogether, Meta projects an increase of 6.6 gigawatts in its data center power capacity by 2035. The financial specifics of these arrangements were not made public in Friday’s announcement.

Shares of Vistra and Oklo both jumped nearly 14% following the news. Other nuclear-related companies, such as NuScale Power (SMR), Constellation Energy (CEG), and Nano Nuclear Energy (NNE), also experienced gains. Meta’s stock price remained relatively stable.

Why This Is Important

In recent months, several leading technology companies have secured deals with nuclear and other clean energy providers to ensure a reliable power supply for their AI-driven data centers. These companies are prioritizing independent energy sources, as the substantial electricity demands of data centers can raise energy costs in local communities.

Analysts at Wedbush commented, “This development is a positive signal for the broader nuclear sector, including Oklo, as it demonstrates that large-scale tech companies are increasingly turning to innovative energy solutions to support the AI boom, with energy supply being a major challenge for the industry.”

Last year, Meta secured a nuclear power deal with Constellation Energy. Other tech giants have also entered into agreements with nuclear startups and providers as they work to expand their AI capabilities.