SMR AI Data Center Deals, Oracle’s 1 GW SMR Project, Switch’s 12 GW Oklo Agreement, and 10+ Major PPAs (2023 to 2026)

SMR Commercial Projects, Oracle’s 1 GW Plan Signals Broad Hyperscaler Adoption

Hyperscalers shifted from peripheral interest in nuclear power before 2024 to pursuing direct, large-scale procurement and integration commitments, a strategic pivot driven by the unsustainable power demands of artificial intelligence. This change marks a transition from viewing nuclear energy as a theoretical option to treating it as a core component of future infrastructure planning, with tech companies now acting as key financial and commercial enablers for the next generation of nuclear reactors.

• Prior to 2024, tech company engagement with nuclear power was characterized by cautious exploration, typically involving smaller power purchase agreements for electricity from existing plants or co-location studies. The initiatives were fragmented and did not represent a systemic shift in energy procurement strategy.
• The market’s inflection point arrived in September 2024 when Oracle announced it was designing a data center to be powered directly by three Small Modular Reactors (SMRs). This move signaled a significant strategic evolution, moving beyond simple power purchasing to the direct integration of nuclear generation assets into data center design, aiming for grid independence and unparalleled reliability.
• Following Oracle’s move, the market accelerated with a series of landmark agreements in 2025 and 2026 that validated the trend. These included Meta’s deals to unlock up to 6.6 GW of nuclear capacity, Amazon’s $50 billion partnership to deploy 960 MW of SMRs with X-energy, and Google’s 615 MW PPA that facilitated the restart of a previously decommissioned nuclear plant.
• This rapid succession of multi-gigawatt commitments demonstrates that securing clean, baseload power is no longer an ESG-driven preference but a critical business imperative for supporting AI-driven growth. The scale and structure of these deals indicate that tech companies are now willing to underwrite the development of new nuclear assets to secure their energy future.

Oracle 10+ Nuclear-for-AI Partnerships, From PPAs to Direct SMR Integration (2023 to 2026)

Tech companies are establishing a new, dedicated market for nuclear power by forging diverse partnership models that extend beyond traditional energy procurement. The industry has progressed from simple offtake agreements with existing nuclear plants to funding the development of advanced reactor technologies and designing fully integrated, nuclear-powered data center campuses. This proactive engagement provides the revenue certainty needed to finance and construct capital-intensive nuclear projects.

• The most common entry point remains the Power Purchase Agreement (PPA) with operators of existing nuclear fleets. For example, in October 2025, Meta signed a 20-year, 1, 121 MW agreement with Constellation Energy, demonstrating the value of securing large blocks of carbon-free power from established, reliable assets.
• A more strategic partnership model involves using long-term offtake commitments to enable new projects or restart idled ones. Google’s 25-year PPA with Next Era Energy for 615 MW from the Duane Arnold Energy Center was the critical factor that made restarting the previously decommissioned plant economically viable.
• The most advanced form of collaboration involves direct partnerships with reactor developers to build new SMRs specifically for data centers. Amazon’s September 2025 agreement with X-energy, KHNP, and Doosan Enerbility to deploy 960 MW by 2039, and Oracle’s plan to integrate three SMRs, exemplify this forward-looking approach to secure dedicated power.
• The sheer scale of these partnerships is redefining the market. The master power agreement between advanced nuclear firm Oklo and data center developer Switch, announced in December 2024, outlines a plan to potentially deploy up to 12 GW of advanced reactors, representing one of the largest commitments to date.

Table: Major Nuclear Power Partnerships for Data Centers (2023-2026)

US Dominance, Oracle’s SMR Strategy Concentrates AI Power Infrastructure in North America

The United States has emerged as the unequivocal center for the development of nuclear-powered data centers, with nearly all significant projects and partnerships announced between 2023 and 2026 located in North America. This geographic concentration is the result of a powerful convergence of factors: the physical location of the world’s largest data center fleets, a mature (though complex) regulatory framework for nuclear energy, and robust federal financial incentives.

Meta Commits to 6.6 GW Nuclear Power

This infographic is a direct visual representation of a key data point mentioned in the section’s table, specifically Meta’s 6.6 GW nuclear power commitment.

(Source: LinkedIn)

• Between 2021 and 2023, discussions around SMRs for industrial use were global but lacked commercial urgency. After 2024, the focus decisively shifted to the U.S. as hyperscalers like Oracle, Amazon, Microsoft, and Google began executing energy strategies tied to their massive domestic infrastructure footprints.
• Key projects are clustered in states with established nuclear expertise and supportive policies. Amazon’s co-location project with Talen Energy is in Pennsylvania, Google’s PPA supports a plant in Iowa, Meta’s development agreement with Oklo targets Southern Ohio, and Standard Power’s planned SMRs are in Ohio and Pennsylvania.
• The Inflation Reduction Act (IRA) has been a critical accelerant, offering production and investment tax credits that improve the economic viability of new and existing nuclear projects. These incentives make the U.S. a more attractive location for capital-intensive nuclear investments compared to other regions.
• While some international activity exists, such as Westinghouse’s agreement to construct AP 300 SMRs in the UK, these projects are not yet directly tied to specific hyperscale data center offtakers. The U.S. remains the only region where tech companies are actively underwriting and integrating nuclear power at a gigawatt scale.

SMR Technology, Oracle’s 1 GW Plan Advances Tech from R&D to Commercial Scale

While no data center is yet powered by a Small Modular Reactor, the wave of procurement commitments and development partnerships between 2024 and 2026 has successfully transitioned the technology from a conceptual R&D phase to a tangible commercialization pathway. By providing clear demand signals and offtake agreements, tech giants like Oracle are effectively underwriting the costly and lengthy process of bringing first-of-a-kind (FOAK) reactor designs to market.

Explainer: Small Modular Reactor (SMR) Technology

The section heading is “SMR Technology,” and this diagram provides a direct, technical explanation of the reactor type being discussed, making it a perfect match.

(Source: Introl)

• In the period from 2021 to 2023, the SMR market was defined by design certifications and the significant challenges of FOAK projects, highlighted by the cancellation of the Nu Scale-UAMPS project due to rising costs. The technology lacked a committed, large-scale customer base.
• Beginning in 2024, the dynamic shifted from technology-push to market-pull. Oracle’s decision to design a data center around SMRs, followed by similar moves from Amazon and Meta, created a bankable demand profile that developers could take to investors and regulators.
• The strategy acknowledges the long lead times, with the first SMR-powered data centers not expected to be operational until approximately 2030. However, the multi-year PPAs and funding agreements signed today are the critical catalysts needed to finance the five-to-seven-year process of development, licensing, and construction.
• A multi-pronged approach to technology adoption is evident. Some companies pursue co-location with existing plants as a near-term bridge strategy, others procure SMR designs that have completed regulatory reviews, while firms like Google provide early-stage funding for multiple advanced reactor designs, including those from Terra Power, to create future offtake options.

SWOT Analysis, Oracle Nuclear SMR Strategy Risks and Opportunities

The strategic pivot to SMRs offers hyperscale companies a definitive solution to their escalating energy and sustainability challenges, but this opportunity is balanced by the significant financial, regulatory, and execution risks inherent in nuclear energy projects. The period from 2024 to 2026 clarified both the scale of the opportunity and the magnitude of the obstacles, shifting the risk-reward calculation from theoretical to concrete.

• The primary strength is the ability to secure a long-term, predictable supply of 24/7 carbon-free baseload power, decoupling future growth from the constraints of volatile energy markets and congested power grids.
• The main weakness is the exposure to the high costs and lengthy timelines of FOAK nuclear projects, which have historically been susceptible to budget overruns and delays.
• The opportunity is to create a powerful competitive advantage by building a self-sufficient, resilient, and sustainable infrastructure backbone for the AI era, while leveraging federal incentives to mitigate costs.
• The greatest threat is execution failure and the potential for being locked out of the market as competitors secure the limited initial supply of SMR capacity and experienced nuclear construction partners.

Table: SWOT Analysis for SMR Adoption by Data Centers

$50 B Amazon SMR Deal, Oracle Must Secure Nuclear Partners in 2026 or Risk Delays

For 2026, the single most critical action for Oracle is to formalize its SMR partnership by announcing a specific reactor vendor and project location, and subsequently begin the pre-licensing engagement with the Nuclear Regulatory Commission. Its competitors are moving aggressively to secure the finite pool of experienced nuclear developers, engineers, and prime sites, creating a time-sensitive window for action before the best options are claimed.

Data Center Power Demand Projected to Surge

This chart shows the accelerating power demand that is driving the competitive urgency for Oracle to secure energy partners, as described in the section.

(Source: POWER Magazine)

• If Oracle announces a definitive partnership and site selection by the end of 2026, it will validate its leadership position and likely trigger an accelerated wave of similar commitments from other large industrial and tech players who are currently in a “wait and see” mode. This would signal that the market for direct nuclear integration is viable.
• Watch for formal filings with the NRC as the next key milestone. A submitted application, even for a construction permit, represents a significant financial and strategic commitment, moving the project from a design concept to a tangible development with a formal regulatory timeline.
• A potential scenario is that other hyperscalers, such as Microsoft for its planned 5 GW “Stargate” supercomputer, could move to secure capacity from the same few SMR vendors that Oracle is likely evaluating, creating a competitive squeeze for limited manufacturing slots and engineering talent. Delay could result in being pushed to the back of a decade-long queue.

The questions your competitors are already asking

This report covers one angle of SMRs powering the AI cloud. The questions that matter most depend on your work.

• What is actually happening with Oracle’s 1 GW SMR project since the announcement?
• Which SMR developers are gaining or losing ground in the hyperscaler data center market?
• What is the outlook for SMR deployment in hyperscaler data centers by 2030?
• How do SMRs compare to grid-scale renewables for providing baseload power to AI data centers?

This report does not answer these. Enki Brief Pro does.

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