Oracle Considers Next-Gen Nuclear Power to Meet Data-Center Power Needs

Oracle's Interest in Next-Gen Nuclear Power

Larry Ellison, the chairman of Oracle, has revealed this week that the increasing electricity demand of AI is pushing the company to contemplate the use of next-gen nuclear power. During an earnings call, Ellison disclosed that Oracle is in the process of designing a data center that will require over a gigawatt of electricity. This power would be supplied by three small nuclear reactors, as reported by CNBC.

Oracle's Planned Data Center and Small Modular Nuclear Reactors

Ellison stated that the planned data center of Oracle would be powered by small modular nuclear reactors, which already have the necessary building permits. Although he didn't reveal the location, he emphasized the increasing energy demand that data centers will face in the future during the earnings call. The reactors under consideration, which are under 300 megawatts, promise a quicker deployment of carbon-free energy. Despite their potential, small modular reactors are not expected to be commercialized in the U.S. until the 2030s.

Oklo's Role in the Nuclear Energy Industry

This summer, it was noted that Oklo, a nuclear startup backed by Sam Altman, is a favorite of Zero Hedge and is on track to launch its first reactor by 2027. The company, which has been identified as a potential solution to the extreme forthcoming demands in energy due to artificial intelligence, manufactures nuclear power plants. These plants range from 15 MWe to 50 MWe and utilize liquid metal reactor technology.

Oklo's Progress and Future Plans

While licensing and fuel supply are still obstacles, the company has been chosen by the Department of Energy for four cost-share awards to potentially commercialize advanced recycling technologies. It has also secured a site use permit from the DOE and a fuel award from INL, as reported by Reuters. Jacob DeWitte, Oklo's co-founder and CEO, expressed his excitement about the diversity of customers, indicating that their size and business model align with what customers are interested in.

Cost and Value of Oklo's 'Aurora Powerhouse' Reactor

Oklo's 'Aurora powerhouse' reactor is estimated to cost around $70 million for the 15 MW version, with an LCOE of $80-$130/MWh. This is similar to peaking gas-fired plants and offshore wind, according to a Lazard analysis.

Potential Oklo and Oracle Partnership

Ellison, a well-known supporter of new energy in Tesla, could potentially form a partnership with Oklo and Oracle in the future.

Bottom Line

The increasing demand for electricity in data centers, largely driven by the rise of AI, is pushing companies like Oracle to explore innovative energy solutions like next-gen nuclear power. The potential of small modular nuclear reactors, despite their expected commercialization in the U.S. not until the 2030s, is becoming increasingly evident. Companies like Oklo are pioneering the way in this field, and it will be interesting to see if Oracle forms a partnership with them in the future. What are your thoughts on this development? Feel free to share this article with your friends. Don't forget to sign up for the Daily Briefing, which is available every day at 6 pm.