Oklo and X‑Energy Race to Power AI Data Centers First

Oklo and X‑Energy Race to Power AI Data Centers

AI data centers are increasingly limited by power availability rather than hardware. A single 100‑MW facility can consume as much electricity as roughly 80,000 homes, underscoring the urgency for new generation capacity. Two nuclear specialists, Oklo and X‑Energy, are vying to supply that power with small modular reactors (SMRs). While both aim to serve the booming AI market, their timelines and licensing approaches differ markedly.

Oklo’s Early‑Starter Advantage

Oklo has secured a spot in the Department of Energy’s Reactor Pilot Program, which fast‑tracks testing and licensing for its Aurora‑INL reactor in Idaho Falls. Groundbreaking took place in September 2025, and the company’s CFO indicated in the latest earnings call that critical work is moving toward a planned 2028 start‑up. With an estimated 2,441 data centers expected to be online by December 2028, Oklo’s timeline aligns closely with market demand. The early‑stage advantage could give the firm first‑mover benefits, generating revenue and operational data that accelerate future deployments.

X‑Energy’s Slower but Scalable Path

X‑Energy has not yet broken ground on any reactor. The company is pursuing the Nuclear Regulatory Commission’s standard licensing route, a longer process that ultimately yields a full commercial operating license. While this adds years to its schedule, it also positions X‑Energy to build a fleet of reactors once approvals are secured. The approach may be slower in the near term but offers a clearer pathway to large‑scale deployment.

Speed vs. Scale: Which Strategy Wins?

Oklo’s pilot‑program status suggests it could be the first to generate electricity, capturing early demand and building customer relationships. However, meeting the projected surge in data‑center load will likely require multiple reactors, and each future unit will still need its own regulatory approval. X‑Energy’s standard licensing could limit its near‑term output but may provide a smoother route to a commercial fleet that can serve thousands of megawatts over the coming decade.

The race ultimately comes down to timing versus scalability. Oklo is poised to deliver power first, potentially shaping market confidence and establishing a customer base. X‑Energy, meanwhile, is building a foundation for long‑term capacity that could become essential as AI infrastructure expands beyond the initial wave of data centers.

Image source: Getty Images.

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