Meta signs nuclear power deals to power AI expansion
What's the story
Meta has signed a series of long-term contracts, spanning 20 years, to purchase power from three Vistra nuclear plants in the US. The deal also involves collaborative projects with two companies looking to build small modular reactors (SMRs). The move comes as part of Big Tech's strategy to secure reliable electricity supplies amid rising energy demands due to artificial intelligence and data centers.
Strategic expansion
Meta's power purchase and development plans
Meta will buy power from Vistra's Perry and Davis-Besse plants in Ohio, as well as the Beaver Valley plant in Pennsylvania. The company hopes this deal will help finance expansion at these plants and extend their operational life. One of the two reactors at Beaver Valley is licensed to run through 2047, while those at the Ohio plants have licenses until at least 2036.
Reactor development
Meta's role in developing small modular reactors
Along with power purchase, Meta will also help develop SMRs being planned by Oklo and TerraPower, a company backed by billionaire Bill Gates. SMR supporters believe these reactors could be cost-effective in the future as they can be built in factories instead of on-site. However, critics argue they may not achieve economies of scale like current large reactors.
Energy impact
Meta's nuclear energy agreements and future plans
Meta's Chief Global Affairs Officer, Joel Kaplan, said these agreements along with last year's deal with Constellation to keep an Illinois reactor running for 20 more years will make Meta one of the largest corporate buyers of nuclear energy in US history. The contracts are expected to provide up to 6.6GW of nuclear power by 2035. To put this into perspective, a typical nuclear power plant has a capacity of about 1GW.
Funding support
Meta's funding for reactor development
Meta will also provide funding for TerraPower's development of two reactors that could generate up to 690 megawatts of power as early as 2032. The agreement also gives Meta rights to energy from up to six other TerraPower reactors by 2035. TerraPower President and CEO Chris Levesque said this agreement will enable rapid deployment of these reactors.