Oklo Inc. (NYSE:OKLO) shares are trading higher Tuesday as nuclear stocks rally after Alphabet Inc. (NASDAQ:GOOG) signed a 20-year agreement with Constellation Energy Corp. (NASDAQ:CEG) to add 890 megawatts of nuclear capacity to the PJM Interconnection grid.
- Oklo shares are climbing with conviction. What’s driving OKLO stock higher?
Google Funds 890 Megawatts of Nuclear Upgrades
The 20-year power purchase agreement will fund upgrades to 11 Constellation-owned nuclear units in Illinois, Pennsylvania and New Jersey, which are designed to unlock additional power from the existing reactors. Constellation plans more than $4.3 billion in investment tied to the deal, with the first increment expected by 2028. The companies also signed a separate 15-year agreement covering 2,700 megawatts from Constellation’s existing PJM fleet.
“Our agreement with Constellation to fund nuclear reactor uprates will strengthen the PJM grid, which serves 67 million people,” said Amanda Peterson Corio, Google’s global head of energy and power.
A Second Hyperscaler Deal and a Large Grid Shortfall
Six days earlier, Amazon.com Inc. signed its own 20-year agreement with Constellation for another 190 megawatts. Together, the two contracts fund 1,080 megawatts of new power, about 16% of the 6,831-megawatt shortfall PJM identified after its latest capacity auction. Constellation shares rose 8.4% to $289.98 in premarket trading, though they remain down 17.9% for the year. Nuclear peers moved higher alongside them.
Why Oklo Stands to Benefit From Hyperscaler Nuclear Demand
Oklo is not a party to either agreement, but the deals reinforce the demand it is building its business around. Oklo is developing Aurora fast-fission powerhouses under a build, own and operate model, selling electricity directly to customers. Its first powerhouse, at Idaho National Laboratory, is targeted for 2028. The company has a 12-gigawatt master power agreement with data center developer Switch and a prepayment agreement with Meta to develop a 1.2-gigawatt power campus in Pike County, Ohio.
Google and Amazon committing to 20-year nuclear contracts is the kind of long-term demand signal that supports that model. Because the Constellation agreements fund upgrades at existing reactors, with the first increment expected by 2028, they cover only about 16% of that shortfall. That leaves most of the gap unfilled.
Oklo Shares Edge Higher
OKLO Price Action: At the time of publication, Oklo shares are trading 7.26% higher at $38.58, according to data from Benzinga Pro.
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