Dec 18 (Reuters) - Sam Altman-backed nuclear startup

Oklo Inc ( OKLO ) said on Wednesday it has signed a non-binding

agreement to provide power to Las Vegas-based data center

operator Switch.

Under the agreement, Oklo ( OKLO ) will develop nuclear reactors,

called the Aurora powerhouse, with a total capacity of 12

gigawatts through 2044.

Each Aurora Powerhouse reactor has a maximum power level of

15 megawatts electric, according to the U.S. Nuclear Regulatory

Commission.

WHY IT'S IMPORTANT

Nuclear energy, which is nearly carbon-free and considered

more reliable than other sources of energy such as solar and

wind, has emerged as a popular source of power amid a worldwide

push towards net-zero carbon emissions.

Several U.S. utilities are signing deals with big tech

companies such as Microsoft ( MSFT ) and Amazon ( AMZN ) to

power their data centers with electricity generated from nuclear

plants.

MARKET REACTION

Shares of Oklo ( OKLO ) rose nearly 12% to $21.41 before the bell.

KEY QUOTES

"The timescale of this master agreement underscores Switch

and Oklo's ( OKLO ) commitment to meeting artificial intelligence's

growing electricity demands with clean, sustainable power," Oklo ( OKLO )

said.

CONTEXT

Switch operates multiple renewable energy powered data

centers across the United States and counts companies such as

NVIDIA ( NVDA ), FedEx ( FDX ), Alphabet's Google and

PayPal ( PYPL ) among its clients.

Oklo ( OKLO ), which went public in May through a merger with

Altman's blank-check firm, is aiming to develop its first small

modular nuclear reactor by 2027.