Google Partners with Kairos Power for Innovative Nuclear Energy Deal

 

Google has entered into a groundbreaking agreement to purchase energy from a fleet of small nuclear reactors, a move aimed at meeting the increasing power demands associated with artificial intelligence (AI) applications. The tech giant has ordered six or seven small modular reactors (SMRs) from California-based Kairos Power, with the first reactor expected to be operational by 2030 and the others to follow by 2035.

This initiative is part of Google's strategy to provide a low-carbon energy solution for its data centers, which consume significant amounts of electricity. The company, a subsidiary of Alphabet, emphasized that nuclear energy offers "a clean, round-the-clock power source that can help us reliably meet electricity demands."

As the demand for generative AI and cloud storage surges, tech companies are facing increased energy requirements. Recently, Microsoft announced a deal to source energy from the Three Mile Island nuclear plant in Pennsylvania, which had been inactive for five years after a major reactor meltdown in 1979. Additionally, Amazon acquired a nuclear-powered data center in Pennsylvania earlier this year.

While Google did not disclose specific locations for the new reactors or financial terms of the agreement, the tech company plans to secure a total of 500 megawatts of power from Kairos, which was established in 2016 and is currently constructing a demonstration reactor in Tennessee, scheduled for completion in 2027.

Michael Terrell, Google’s senior director for energy and climate, noted the urgent need for new electricity sources to support AI technologies. He stated, "This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlocks the full potential of AI for everyone."

Kairos Power's CEO and co-founder, Mike Laufer, expressed confidence in the project, stating that this innovative approach should help ensure projects are completed on time and within budget. The deal, which is pending regulatory approvals, reflects a growing trust in SMR technology. These smaller, factory-built reactors are designed to minimize the cost overruns and delays typically associated with constructing larger plants. However, some critics argue that SMRs may not achieve the same economic efficiencies as larger reactors.

SMRs are characterized by their maximum output of 300 megawatts and their ability to generate over 7 million kilowatt-hours daily. In contrast, large nuclear power facilities usually produce more than a gigawatt, with the upcoming Hinkley Point C plant in the UK projected to generate 3.2 gigawatts, enough to power six million homes.

In the UK, several companies are vying for government contracts to develop SMR technologies as part of efforts to revitalize the nation’s nuclear sector. Rolls-Royce SMR, one of the contenders, recently received a significant contract from the Czech government to build a fleet of reactors. The company claims that one of its SMRs could generate enough power for one million homes while being substantially smaller than traditional nuclear plants.

Proponents of SMRs argue that they could complement existing large reactors, aiding the transition away from fossil fuel power generation. They also require less cooling water and a smaller physical footprint, making them suitable for a wider range of locations. Nonetheless, environmental activists and some academics have expressed skepticism, arguing that resources might be better allocated to renewable energy sources like offshore wind, given that SMRs lack a proven track record in the UK.