Oklo Inc. (OKLO) shares moved higher on Wednesday after a report said the advanced nuclear reactor developer is joining a Trump administration-led initiative designed to accelerate the development of new power plants to support the rapid expansion of artificial intelligence data centers.
According to a Bloomberg report citing a document it reviewed, Oklo and X-Energy will participate in a $200 million government program aimed at speeding up the deployment of power infrastructure needed to meet growing AI-related electricity demand.
The initiative also includes technology companies Microsoft and Nvidia and could be formally announced at an AI energy summit convened by the US Department of Energy.
Oklo shares rose as much as 5.9%, while X-Energy gained as much as 3.2% on Wednesday.
AI data center growth drives nuclear power push
The reported initiative comes as policymakers and technology companies seek solutions to rising electricity demand created by the rapid expansion of AI data centers.
According to Bloomberg, the program is intended to address concerns that the buildout of AI infrastructure has contributed to higher electricity prices across the United States.
Technology companies including Nvidia and OpenAI have previously identified energy availability as one of the biggest challenges to expanding AI adoption while maintaining the United States’ competitive position against China in artificial intelligence.
The Department of Energy is expected to use the initiative to accelerate the development of next-generation nuclear facilities capable of providing continuous, carbon-free electricity for large-scale AI computing infrastructure.
Bloomberg reported that several Department of Energy national laboratories, along with institutions including the University of Texas at Austin, are expected to share $60 million over a three-year period under the initiative.
Program targets faster nuclear plant development
According to the document reviewed by Bloomberg, one of the primary objectives of the initiative is to reduce the time required to design, license and construct new nuclear power plants.
The program also seeks to lower the staffing requirements needed to operate future facilities.
The Department of Energy estimates that approximately 300 gigawatts of new nuclear generating capacity will be required by 2050 to meet future electricity demand.
However, advanced nuclear reactors have not yet begun operating on a commercial scale.
Alongside this initiative, the Department of Energy has pursued other measures to support nuclear development, including plans to provide plutonium from Cold War-era nuclear weapons for use by commercial reactor developers.
AI investment reshapes US energy priorities
The latest effort reflects increasing attention from the US administration on ensuring sufficient energy infrastructure to support continued AI development.
Demand for electricity has accelerated after years of relatively flat growth, driven largely by the expansion of AI data centers requiring significant computing power.
The increasing strain on power markets and its effect on consumer electricity prices have also emerged as political issues ahead of the November midterm elections.
The reported initiative highlights the growing intersection between artificial intelligence, energy policy and advanced nuclear technology as governments and technology companies work to secure reliable sources of power for the next phase of AI infrastructure expansion.
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