Small modular reactor and nuclear recycling firm Oklo has signed a Memorandum of Understanding (MoU) with RPower, a provider of onsite prime and backup power solutions, to deploy a phased power model that combines natural gas and nuclear power for the data center sector.

The model will combine RPowers natural gas generators with Oklo's Aurora Powerhouse reactor, which the companies claim will eliminate reliance on diesel backup generation in the data center market.

RPower x Oklo
– Oklo

Oklo’s Aurora Powerhouse nuclear reactor is a fast neutron reactor that utilizes metallic fuel. Its capacity ranges between 15MW and 50MW.

“This collaboration aims to ensure that data centers can access reliable energy today while building a clear and practical pathway to clean energy in the future,” said Jacob DeWitte, co-founder and CEO of Oklo.

According to the partners, the model will work in three stages. First, RPower’s natural gas generators will be deployed within approximately 24 months to meet the immediate power needs of data centers that local utilities are unable to serve.

Following this, Oklo’s Aurora powerhouses will be installed on-site as they become commercially available.

Finally, over time, the SMRs will displace the gas generators and become the primary energy supplier for the data center. This will enable the gas generators to serve as backup and support grid resilience by feeding power into the local grid when needed.

Oklo and RPower intend to deploy the model with existing and new partners.

“Our relationship with Oklo represents a powerful way to bridge today’s energy demands with tomorrow’s clean energy solutions,” said Jamie Smith, COO of RPower.

Numerous figures across the power and data center sector have exclaimed the potential of natural gas as a bridging fuel. In November, CEO of US utility MISO, Clair Moeller contended that data centers could rely on gas-fired generation in the short term to meet the sky-high demand. The power plants could then be used as emergency backup power for the grid.

The deal with RPower is the latest for Oklo as it increasingly targets the data center sector as a crucial off-taker.

At the end of 2024, it signed a non-binding Master Power Agreement with US data center developer Switch to supply up to 12GW of power through 2044.

The agreement with Switch was Oklo’s fifth with a data center company in 2024. In April, it signed its first agreement with a data center operator, inking a 500MW agreement with Equinix. In May, it signed a non-binding letter of intent outlining plans for a PPA with Prometheus Hyperscale to provide 100MW of power through one or more SMRs. Finally, last month, it partnered with two undisclosed data center providers to deliver up to 750MW of power.

At present, Oklo has a customer pipeline exceeding 14GW of power. However, it hasn’t been all smooth sailing for the Sam Altman-backed firm. In 2023, the US Air Force rescinded a $100 million award for one of its microreactors, and the firm has yet to receive approval from the Nuclear Regulatory Commission for its designs.

In addition, last year, investment management firm Kerrisdale Capital said that Oklo is beyond optimistic about its timelines. The firm is working towards submitting a license application in 2025 and hopes for a first reactor deployment by late 2027. However, Kerrisdale contended that the company lacks the long-term supply of enriched uranium required for its reactor technology.

Founded in 2021, RPower is a power generation company specializing in backup power. The company is backed by I Squared Capital. It has made several announcements over recent months targeting the data center sector. In September, it partnered with landowner Wise Asset to provide powered-land solutions to serve large energy users, including data centers and heavy industrial manufacturing.