Vistra Corporation, publicly traded on the New York Stock Exchange under the ticker VST, announced on Friday a substantial and strategic 20-year power purchase agreement (PPA) with Meta Platforms, Inc., a major player in technology and social media markets, listed on NASDAQ as META. This agreement encompasses a commitment by Meta to procure a significant quantity of zero-carbon electricity generated by Vistra's fleet of operating nuclear power plants.
This landmark deal involves the supply of over 2,600 megawatts (MW) of clean nuclear energy derived from three power plants under Vistra's management. Specifically, the contract stipulates that Meta will acquire 2,176 MW of nuclear power generated by the Perry and Davis-Besse facilities, which are situated in Ohio. In addition, Meta will source an extra 433 MW from uprated capacity increments at these sites as well as from the Beaver Valley plant located in Pennsylvania.
Importantly, in excess of 15% of this contracted electrical capacity consists of newly added generation resources that have been integrated into the PJM Interconnection grid, an expansive regional transmission organization serving parts of the eastern United States. While the electricity produced by these plants will flow indiscriminately into the regional grid to benefit all users, Meta's contractual arrangement effectively ensures its preferential access to this volume of zero-carbon power.
Energy deliveries under this agreement are slated to begin in late 2026. The full contract capacity, amounting to 2,609 MW, will be phased in, with incremental additions expected through 2034. Vistra has obtained initial license renewals from the Nuclear Regulatory Commission (NRC) for all three nuclear stations involved in the deal. This regulatory approval provides the company with the requisite confidence to pursue further license extensions, each potentially extending reactor operations by two decades.
Current license expiration dates for the relevant units are as follows: Beaver Valley Unit 1 is licensed until 2036, Davis-Besse until 2037, Perry until 2046, and Beaver Valley Unit 2 is authorized to operate through 2047. Leveraging the newly secured PPAs, Vistra intends to seek additional license renewals to sustain these vital carbon-free assets for an extended operational horizon of 20 more years, supporting ongoing regional and corporate sustainability objectives.
Illustrating the growing interest of large technology companies in nuclear power, another development announced the same day featured Oklo Inc., a nuclear startup also listed on the NYSE under the symbol OKLO. Oklo revealed a strategic collaboration with Meta aimed at constructing a 1.2-gigawatt nuclear power campus in Ohio. This initiative signifies a broader industry trend wherein both established nuclear operators like Vistra and innovative next-generation developers like Oklo are aiming to secure their roles as essential energy partners for technology giants seeking reliable, clean power.
The combination of Vistra's existing nuclear power generation capabilities and Oklo's future-build projects encapsulates Meta's dual-pronged strategy. It entails sourcing readily available nuclear-generated power for near-term needs while simultaneously investing in new nuclear capacity to accommodate anticipated growth driven by the significant power demands of artificial intelligence workloads and other advanced technologies.
Following the disclosure of the PPA, Vistra's stock experienced a notable market response. Pre-market trading data indicated a 15.21% increase, elevating the share price to $173.50. This market performance reflects investor confidence inspired by the long-term, high-volume contract with Meta.
Meta Platforms' stock has shown relative stability, trading at approximately $645.15 with marginal fluctuations. Meanwhile, Oklo's shares have also experienced positive momentum, trading near $114.40, reflecting the market's responsiveness to their innovative nuclear partnership with Meta.
The agreement between Vistra and Meta underscores a significant evolution in corporate energy procurement strategies, where technology companies increasingly align with nuclear energy providers to meet sustainability goals and secure dependable, carbon-free energy sources necessary to support expanding data center operations.
This arrangement also attests to the critical role of regulatory frameworks and license renewals in shaping the future viability of nuclear power plants. With extended licenses potentially adding decades of operational life, these plants represent a pivotal component of the regional energy infrastructure capable of delivering large-scale clean energy.
In conclusion, Vistra's 20-year PPA with Meta constitutes a significant milestone in the partnership between the nuclear energy sector and large technology firms committed to reducing their carbon footprints. The deal not only reinforces Vistra's position as a leader in nuclear power generation but also aligns with Meta's strategy to secure reliable, clean energy supplies that will support its AI-driven growth in the coming decades.