KEY POINTS
- Google partners with Kairos to secure nuclear energy for AI operations.
- The agreement involves six to seven modular reactors producing 500 megawatts.
- Small modular reactors aim to provide reliable, cost-effective power.
Google has signed a groundbreaking agreement with Kairos Power to meet its growing energy demands for artificial intelligence by sourcing electricity from small modular reactors (SMRs).
The partnership marks the world’s first corporate agreement to tap multiple SMRs, setting a precedent for integrating nuclear power into the tech industry.
The deal aims to deploy the first SMR by 2030, with additional reactors planned through 2035. Google has committed to purchasing a total of 500 megawatts from six to seven reactors, designed to provide stable, around-the-clock power to meet the rising energy needs of AI operations.
Nuclear energy gains momentum as AI drives power demand
The collaboration reflects a growing trend of technology companies turning to nuclear power to ensure energy reliability amid expanding AI operations.
Michael Terrell, Google’s senior director for energy and climate, emphasized the importance of nuclear energy in providing dependable, clean electricity: “Nuclear can play an essential role in meeting our demand cleanly, offering continuous power without disruptions,” Terrell explained.
The use of nuclear energy is becoming increasingly common within the tech sector. In March, Amazon purchased a nuclear-powered data center from Talen Energy. Meanwhile, Microsoft recently signed a power agreement with Constellation Energy to assist in reviving a unit of the Three Mile Island plant.
According to Goldman Sachs, U.S. data centers are projected to require 47 gigawatts of new capacity by 2030. This surge in energy demand, driven by AI developments, has prompted companies to explore reliable alternatives like nuclear power.
Streamlining development with modular reactors
Kairos Power will need to secure permits from the U.S. Nuclear Regulatory Commission (NRC) and local agencies before constructing the reactors.
According to Reuters, the company received a construction permit last year for a demonstration reactor in Tennessee, indicating progress toward meeting regulatory requirements.
SMRs are designed to be more cost-effective than traditional nuclear plants by using modular components built in factories instead of on-site, reducing construction costs and timelines. However, some critics argue that SMRs may face financial challenges due to smaller economies of scale compared to large nuclear facilities.
Google’s approach to the partnership with Kairos reflects a long-term investment strategy. Rather than purchasing one reactor at a time, Google has adopted an order book framework to signal strong demand and encourage efficient development.
“This novel approach gives us confidence that we can deliver on cost and schedule,” said Kairos CEO Mike Laufer.
