The escalating power demands of data centres, driven by the surge in artificial intelligence and cloud computing, have exposed critical vulnerabilities in traditional energy grids. A recently announced strategic alliance between Oklo Inc. (NYSE: OKLO) and Liberty Energy Inc. (NYSE: LBRT) offers a pragmatic response to this challenge, blending immediate natural gas solutions with the long-term promise of small nuclear reactors for zero-carbon baseload power. This dual-track approach could redefine how high-demand sectors balance urgency with sustainability, particularly as energy constraints tighten globally.
Immediate Needs, Long-Term Vision
Data centres are among the most power-intensive facilities in modern infrastructure, with global consumption projected to reach 800 terawatt-hours by 2030, nearly double the 2022 figure. The pressure to deliver reliable, scalable energy has pushed companies to seek alternatives to intermittent renewables and overstretched grids. The partnership between Oklo, a developer of advanced fission technology, and Liberty Energy, a provider of natural gas power generation, targets this gap with a two-phase strategy. Initially, Liberty’s Forte natural gas systems will provide immediate, dispatchable power to meet current demands. Over time, Oklo’s Aurora powerhouses—small, modular nuclear reactors—will transition these facilities to emissions-free baseload energy.
This hybrid model acknowledges a hard reality: while nuclear power offers a compelling long-term solution, deployment timelines remain a hurdle. Oklo’s first Aurora plant, under construction in Idaho with Kiewit as the contractor, is not expected to be operational until late 2026 at the earliest. In the interim, natural gas serves as a bridge—reliable, if not ideal from a carbon perspective. The logic here is sound: keep the lights on now, decarbonise later.
Scale and Strategic Fit
The alliance is tailored for large-scale users, with data centres as the primary focus. Oklo has already secured commitments for up to 750 megawatts of power through letters of intent with two major data centre providers, expanding its customer pipeline to 2,100 megawatts as of Q4 2024. Additionally, a master power agreement with Switch, a data centre operator, targets 12 gigawatts of nuclear capacity by 2044—one of the largest corporate power deals on record. Liberty Energy’s role enhances this framework by ensuring operational continuity during the nuclear rollout. Their expertise in managed power solutions, particularly for industrial applications, aligns with the immediate needs of hyperscale facilities.
A subtle nod must be given to industry observers on platforms like X, such as StockSavvyShay, who have highlighted the potential of such partnerships to address data centre energy challenges. The broader sentiment reflects cautious optimism, tempered by questions about execution timelines and regulatory hurdles for nuclear deployment.
Financial and Operational Metrics
While specific financial details of the Oklo-Liberty partnership remain undisclosed, market data provides context for their respective positions. Oklo, listed on the NYSE since its de-SPAC merger in 2024, reported a cash reserve of approximately $306 million as of Q1 2025, per its latest SEC filing, providing runway for reactor development. Liberty Energy, with a more established footprint, posted revenue of $1.1 billion in Q1 2025, up 3% year-on-year, driven by demand for its natural gas power systems. Their combined operational capacity—Liberty’s immediate generation and Oklo’s projected nuclear output—positions them to capture a growing share of the data centre power market, estimated at $15 billion annually by 2027.
Below is a summary of key operational commitments for Oklo, based on public announcements:
| Partnership | Power Commitment | Timeline |
|---|---|---|
| Data Centre Providers (2) | 750 MW | 2026 onwards |
| Switch Master Agreement | 12 GW | By 2044 |
| Total Pipeline | 2,100 MW | Ongoing |
Risks and Realities
Despite the strategic clarity, risks loom large. Oklo’s nuclear ambitions hinge on regulatory approval from the U.S. Nuclear Regulatory Commission, a process historically fraught with delays. The company’s application for its Idaho site, submitted in 2023, remains under review as of Q2 2025, with no guaranteed timeline for resolution. Moreover, while natural gas offers a stopgap, it faces scrutiny amid tightening emissions standards—hardly a long-term fix in a world increasingly obsessed with net-zero targets.
Liberty Energy, for its part, must navigate volatile gas prices, which spiked by 12% in Q1 2025 compared to Q1 2024, per Bloomberg data. This could squeeze margins if passed-through costs unsettle data centre clients. The partnership’s success, therefore, rests on meticulous phasing—ensuring gas-to-nuclear transitions occur before cost or regulatory pressures derail the model.
Broader Implications
The Oklo-Liberty alliance signals a wider trend: hybrid energy solutions are gaining traction as industries grapple with the twin imperatives of reliability and decarbonisation. Data centres, often seen as the backbone of the digital economy, are a litmus test for such innovations. If successful, this model could extend to other power-hungry sectors like manufacturing or cryptocurrency mining, where baseload stability is non-negotiable.
Yet, one must avoid over-optimism. The nuclear component, while promising, is unproven at scale. Oklo’s Aurora reactors, designed for 15 megawatts per unit, must demonstrate cost-competitiveness against alternatives like solar-plus-storage, which have seen installation costs drop by 20% since 2023. Until operational data emerges, the partnership’s full impact remains speculative—intriguing, but not yet bankable.
In summary, the collaboration between Oklo and Liberty Energy offers a practical, if imperfect, blueprint for powering the future. It marries the immediacy of natural gas with the sustainability of nuclear, addressing data centre needs in a manner few others have attempted. Whether it can deliver on both timelines and promises, however, is a question only time—and regulators—can answer.
References
- Bloomberg. (2025, April 15). Natural Gas Price Index. Retrieved from https://www.bloomberg.com/energy
- Bloomberg NEF. (2025, July). Solar-plus-Storage Costs Continue Downward Trend. Retrieved from https://about.bnef.com/blog/solar-storage-costs/
- International Energy Agency. (2024, June). Data Centres and Data Transmission Networks. Retrieved from https://www.iea.org/reports/data-centres-and-data-transmission-networks
- Liberty Energy Inc. (2025, Q1). Quarterly Earnings Report. Retrieved from https://investors.libertyenergy.com
- Moss, S. (2024, July 23). Oklo and Liberty Energy launch next-generation integrated power solution for data centers. Data Center Dynamics. Retrieved from https://www.datacenterdynamics.com/en/product-news/oklo-and-liberty-energy-launch-next-generation-integrated-power-solution/
- NucNet. (2024, November 14). Oklo / Secures Partnerships For Up To 750 MW Of Power For US Data Centres. Retrieved from https://www.nucnet.org/news/oklo-secures-partnerships-for-up-to-750-mw-of-power-for-us-data-centres-11-4-2024
- Oklo Inc. (2024, November 13). Oklo Secures Partnerships for Up to 750 Megawatts of Power for U.S. Data Centers [Press Release]. Retrieved from https://oklo.com/newsroom/news-details/2024/Oklo-Secures-Partnerships-for-Up-to-750-Megawatts-of-Power-for-U.S.-Data-Centers/default.aspx
- Oklo Inc. (2025, Q1). Quarterly Report (Form 10-Q). Retrieved from SEC EDGAR database.
- Reuters. (2025, June 18). Switch inks 12GW nuclear power deal with Oklo. Retrieved from https://www.reuters.com/business/energy/switch-inks-12gw-nuclear-power-deal-2025-06-18/
- S&P Global Market Intelligence. (2025, July 1). Global Data Center Market Forecast to 2027. Retrieved from https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/global-data-center-market-forecast-to-2027-69575394
- StockSavvyShay [@StockSavvyShay]. (2024, November 13). Post regarding Oklo partnerships [Post]. X. Retrieved from https://x.com/StockSavvyShay/status/1856689819864436987
- StockSavvyShay [@StockSavvyShay]. (2025, January 10). Post regarding Oklo and data centre energy [Post]. X. Retrieved from https://x.com/StockSavvyShay/status/1869354223256924648
- StockSavvyShay [@StockSavvyShay]. (2025, July 23). Post regarding Oklo-Liberty partnership [Post]. X. Retrieved from https://x.com/StockSavvyShay/status/1944398132479193179
- StockTitan. (2024, July 23). Oklo and Liberty Energy Launch Next-Generation Integrated Power Solution. Retrieved from https://www.stocktitan.net/news/LBRT/oklo-and-liberty-energy-launch-next-generation-integrated-power-y7armqpq2f46.html
- U.S. Nuclear Regulatory Commission. (2025, July 22). Advanced Reactor Licensing Status. Retrieved from https://www.nrc.gov/reactors/new-reactors/advanced.html
- World Nuclear News. (2024, November 14). Oklo signs power agreement with data centre developer. Retrieved from https://www.world-nuclear-news.org/articles/oklo-signs-power-agreement-with-data-centre-developer
- Yahoo Finance. (2024, December 3). Oklo and Vertiv Announce Collaboration to Advance the Future of Data Center Power and Cooling. Retrieved from https://finance.yahoo.com/news/oklo-vertiv-announce-collaboration-advance-090000959.html
