Power Hungry: Inside Meta’s Huge Investment in a Nuclear Strategy

Core Insights - Meta Platforms is strategically developing a dedicated nuclear power campus in Pike County, Ohio, in partnership with Oklo Inc. to secure its own energy supply for AI operations [2][3][6] - The project aims for a power capacity of up to 1.2 gigawatts (GW), which is equivalent to powering approximately 1.08 million homes [2][3] - This move is part of a broader strategy to ensure energy independence and reliability, addressing the increasing power demands of evolving AI technologies [3][4][8] Company Strategy - The partnership with Oklo represents a significant pivot towards vertical integration, allowing Meta to insulate itself from grid instability and price volatility [3][12] - Meta is utilizing a capital-efficient prepayment model to fund the infrastructure without incurring new debt, leveraging its substantial cash reserves of $44.45 billion [11][18] - The company has secured a total energy pipeline of up to 6.6 GW through various partnerships, enhancing its operational reliability and mitigating risks associated with project delays [12][14] Financial Implications - Meta's capital expenditures (CapEx) for Q3 2025 were reported at $19.37 billion, with a full-year forecast between $70 billion and $72 billion, indicating a significant investment in infrastructure [10][11] - The financial structure of the Oklo deal is seen as a long-term investment, positioning Meta for sustained growth independent of public utility constraints [11][17] - By securing baseload power, Meta guarantees 99.99% uptime for its AI products, which is crucial for the deployment of advanced AI systems [8][15] Industry Context - The increasing demand for electricity due to AI advancements poses a challenge for the current U.S. electrical grid, which may face capacity shortages by 2030 [4][13] - Meta's strategy to build a private grid of nuclear assets provides a competitive advantage over companies relying on the public spot market for electricity, which may face rationing and extreme pricing [14][17] - The transition to an AI-first company necessitates a reliable power supply, making Meta's investment in nuclear energy a strategic asset for future growth [16][17]