Oklo, a small modular reactor (SMR) company, has joined forces with RPower, a provider of on-site power solutions, to create a pioneering hybrid power model combining natural gas and nuclear energy for data centers. This collaboration aims to meet the energy demands of the sector while transitioning toward cleaner, more sustainable energy sources.
What Does the Oklo and RPower Hybrid Power Model Involve?
The hybrid power model combines RPower’s natural gas generators with Oklo’s Aurora Powerhouse nuclear reactor to eliminate reliance on diesel backup generators, a common practice in data centers today. This innovative approach aims to provide a reliable and long-term energy solution for the data center market.
Oklo’s Aurora Powerhouse Reactor: Key Features
Oklo’s Aurora Powerhouse is a fast neutron reactor that uses metallic fuel. The reactor can generate between 15MW and 50MW of power. This flexibility in power generation is a major advantage, as it allows for scalability based on the size and specific energy requirements of different data centers. According to Oklo’s co-founder and CEO, Jacob DeWitte, this partnership offers a path to ensure that data centers have access to reliable energy today while also paving the way for future clean energy solutions.
How Will the Hybrid Power Model Be Rolled Out?
The deployment of the model will occur in three distinct stages:
Stage 1: Immediate Power Needs with Natural Gas
In the first phase, RPower’s natural gas generators will be deployed to meet the immediate energy needs of data centers. This solution will help those data centers that are unable to secure sufficient power from local utilities, ensuring no disruptions in operations.
Stage 2: Integration of Aurora Powerhouse Reactors
As Oklo’s Aurora Powerhouse reactors become commercially available, they will be integrated into the power model. This marks the transition to nuclear power, providing a sustainable energy solution while maintaining reliability for data center operations.
Stage 3: Natural Gas as Backup and Grid Support
In the final phase, the SMRs (small modular reactors) will gradually take over as the primary energy source for data centers, with natural gas generators providing backup power. This configuration ensures grid resilience, as the natural gas generators will remain available to feed energy into the local grid when necessary.
What Are the Long-Term Benefits of the Hybrid Power Model?
The collaboration between Oklo and RPower provides a clear pathway to cleaner energy solutions for data centers. By initially relying on natural gas and transitioning to nuclear power, this hybrid approach ensures that data centers have a reliable energy source in the short term, with the long-term goal of reducing carbon emissions and reliance on fossil fuels. Over time, this shift aligns with the growing demand for sustainable and resilient energy infrastructure in the data center sector.
Oklo’s Growing Presence in the Data Center Sector
Oklo’s move into the data center market is not a one-off collaboration. In recent years, the company has forged several key agreements with data center providers. In 2024, Oklo signed a non-binding Master Power Agreement with US data center developer Switch to supply up to 12GW of power through 2044. This follows a string of partnerships, including one with Equinix for 500MW and Prometheus Hyperscale for 100MW.
As of now, Oklo has a customer pipeline exceeding 14GW of power. However, the company is still working on regulatory approval for its reactor designs and aims to submit a license application by 2025, with hopes to deploy its first reactor by late 2027.
Challenges and Industry Expectations
Despite these ambitious goals, Oklo faces challenges. In 2023, the US Air Force rescinded a $100 million award for one of its microreactors. Additionally, critics such as investment management firm Kerrisdale Capital have raised concerns over the company’s ambitious timelines and its long-term uranium supply for its reactors. Nevertheless, Oklo remains committed to advancing its technology and expanding its influence in the energy sector, particularly in data centers.
RPower’s Role in the Data Center Energy Transition
Founded in 2021 and backed by I Squared Capital, RPower has positioned itself as a key player in providing on-site power solutions for data centers. The company has made several announcements targeting the data center sector, including a partnership with Wise Asset to offer powered-land solutions for large energy users. By combining its expertise in natural gas generation with Oklo’s nuclear technology, RPower is poised to play a crucial role in the energy transition for the data center industry.
FAQ Section
1. How does the Oklo and RPower hybrid power model work?
The hybrid model combines natural gas generators from RPower with Oklo’s Aurora Powerhouse nuclear reactors. Initially, natural gas will meet data center energy needs, with nuclear power gradually taking over as the primary energy source.
2. What is the capacity of Oklo’s Aurora Powerhouse reactor?
The Aurora Powerhouse reactor has a capacity ranging from 15MW to 50MW, providing flexible energy solutions for data centers of different sizes.
3. When will the hybrid power model be deployed?
The deployment will occur in three stages: immediate use of natural gas generators within 24 months, followed by the integration of Aurora reactors as they become available, and finally, the transition to nuclear power with natural gas serving as backup.
4. What are the benefits of using nuclear power in data centers?
Nuclear power offers a sustainable and low-carbon energy source, which helps reduce reliance on fossil fuels and provides a stable and reliable energy supply, especially as data center demand grows.
5. How is Oklo addressing regulatory challenges for its reactors?
Oklo is working towards submitting a license application to the Nuclear Regulatory Commission in 2025 and plans for its first reactor deployment by late 2027. Despite challenges, the company is committed to overcoming regulatory hurdles and advancing its technology.
