A nuclear startup OK aims to use 12 gigawatts of energy over the next twenty years through a framework agreement with the data center operator Switch overthe announced companies Wednesday.

Oklo will use what amounts to a fleet of small nuclear reactors until 2044, generating energy equivalent to the annual electricity consumption of more than 9 million homes in the United States.

Oklo will develop, build and operate the small nuclear plants. It sells electricity to Switch through a number of power purchase agreements for its data centers across the United States.

Oklo stock closed nearly 4% lower on Wednesday.

The broad agreement signed by Oklo and Switch is a non-binding framework that sets high-level goals to be executed against, Oklo CEO Jacob DeWitte told CNBC in an interview. It creates a vehicle to advance large-scale, multi-site energy development and deployment, DeWitte said.

Oklo is a startup supported by OpenAI CEO Sam Altman which is developing micro nuclear reactors. Altman is the president of Oklo, and the company has made its market debut in May through a merger with his SPAC, AltC Acquisition Corp. Oklo has a market capitalization of $2.33 billion.

Switch is a privately held company headquartered in Las Vegas that designs, builds and operates data center campuses in the United States, CEO Rob Roy said Switch is committed to using advanced nuclear power "on a transformative scale for our data centers" through the relationship with Oklo.

Oklo is developing reactors that are much smaller than those in the current US fleet. Its reactors are expected to range in power capacity from 15 megawatts, to 50 megawatts, to 100 megawatts or more. By comparison, the average reactor in the United States is currently about 1,000 megawatts.

The reactors servicing Switch would primarily be 50 megawatts, DeWitte said. Oklo would have to build 240 reactors of that size by 2044 to meet the 12 gigawatt deployment goal.

Oklo thinks its microreactors will reduce the costs associated with building new nuclear plants, shorten construction timelines, and give energy customers more flexible options.

Oklo has not yet used a reactor. The company aims to bring its first plant online at the Idaho National Laboratory in Idaho Falls in 2027.

People familiar with the matter he told Reuters in September that the Switch is considering an initial public offering that would value the company at $40 billion. Switch was taken private by DigitalBridge and IFM Investors for $11 billion in December 2022.

Demand for nuclear power is growing in the United States as technology companies and other data center developers seek reliable, carbon-free electricity to power artificial intelligence.

Amazon and Alphabet announced investments in small nuclear reactor technology in October. Microsoft is helping to bring the Three Mile Island nuclear power plant to life back online through a power purchase agreement.