Key Points
Oklo (NYSE: OKLO), a prominent company in the nuclear energy space, is facing regulatory hurdles in its quest to commercialize small modular reactor (SMR) designs. The company’s application, denied in 2022, has been resubmitted and is progressing, but the timeline for full approval remains uncertain.
Consulting firm McKinsey & Co. estimates that up to $7 trillion will be spent by 2030 to enhance AI data center infrastructure, a significant portion of which will be directed toward energy systems needed to power these centers. Oklo has secured commitments with major companies like Meta Platforms (NASDAQ: META), but exact contract terms, including binding financial components, are not fully disclosed.
In contrast, NuScale Power (NYSE: SMR), another SMR developer, is valued at approximately $4.6 billion and has received regulatory approval to commercialize its designs. As it approaches a critical milestone for a 6-gigawatt project with the Tennessee Valley Authority, NuScale could potentially leapfrog Oklo in market competitiveness, especially if it finalizes a power purchase agreement by the end of 2026.
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