Nuclear Stock Face-Off: Oklo vs. NuScale Power for AI Data Centers

As AI data centers expand rapidly, nuclear power emerges as a potential solution to meet their enormous electricity needs. Oklo and NuScale Power are key players in the small modular reactor (SMR) space, but which is the better investment? According to an analysis by Motley Fool, one may be more attractive for data center clients.

Why Nuclear Power for Data Centers?

AI data centers consume vast amounts of electricity around the clock and require reliable, clean power. Nuclear power, especially SMRs, offers a potential solution with capacity up to 300 MW per unit and can be sited near data centers.

Comparison: Oklo vs. NuScale

• NuScale Power: Has an SMR design certified by the U.S. Nuclear Regulatory Commission (NRC), planning 77 MW per module. However, it has faced delays and funding challenges.
• Oklo: Focuses on very small reactors (1.5-50 MW) using recycled fuel, with preliminary NRC approval. But it remains in early development stages.

Which Is Better for Data Centers?

According to the article, Oklo appears more suitable for data center needs due to its flexible design that can be deployed quickly and at lower cost, while NuScale struggles with regulatory and financial complexities. Both companies face regulatory risks and delays.

What This Means for Investors

Investing in nuclear power carries high risks, especially with regulatory uncertainty and long timelines. Investors interested in this sector should consider diversification and not focus on a single stock. The article does not recommend buying either stock.