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Oklo recently announced a significant agreement with Switch, a provider of AI, cloud, and enterprise data center services. The nonbinding Master Power Agreement outlines Oklo’s plans to deploy 12 gigawatts of its Aurora powerhouse projects through the year 2044. Described as “one of the largest corporate power agreements in history” by the company, this partnership marks a significant step forward for Oklo.
Looking ahead, Oklo’s next milestone involves submitting its combined license application (COLA) to the U.S. Nuclear Regulatory Commission in the first half of this year. This submission will set the stage for future applications, with additional COLAs planned for 2025 and 2026 to support the deployment of more powerhouses. The company is also making progress on site work at the Idaho National Laboratory, where the first 15-MW reactor is set to be deployed by late 2027.
However, it’s important for investors to be aware that small modular reactors (SMRs) are still several years away from becoming operational. Recent projects in this field have faced challenges, with significant cost overruns being a common issue. For instance, NuScale Power, another SMR developer, encountered multiple cost overruns in its Utah Associated Municipal Power System (UAMPS) project, leading to the termination of its agreement in late 2023 due to complexity-related issues.
Industry experts suggest that widespread deployment of SMRs may not occur until the 2030s. As a result, Oklo has a substantial journey ahead before achieving commercial operations and meaningful revenue generation, which positions the stock as a risky proposition for investors at present.
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