In a move set to reshape both the energy and technology landscapes, Google has announced a landmark deal to back the construction of seven small nuclear power reactors in the U.S. This first-of-its-kind agreement is a strategic push to meet Google’s surging energy needs as it expands its AI capabilities while supporting the U.S. nuclear industry's long-anticipated revival.
The partnership involves Google committing to purchase 500 megawatts of power from the reactors, which will be developed by nuclear-energy startup Kairos Power. The companies expect the reactors to begin generating electricity by the end of the decade. The project could provide a significant boost to the country’s energy sector, ushering in the commercial deployment of small modular nuclear reactors (SMRs), which are seen as the future of nuclear energy due to their lower construction costs and quicker build times compared to traditional nuclear plants.
A New Era for U.S. Nuclear Power
This deal between Google and Kairos Power marks a significant step toward reviving America’s nuclear-power industry, which has been stagnant due to the high costs and long timelines of building large, conventional nuclear plants. SMRs like those being developed by Kairos offer a more efficient and cost-effective solution, providing smaller, modular reactors that can be built in factories and assembled on-site.
“The end goal here is 24/7, carbon-free energy,” said Michael Terrell, Google’s senior director for energy and climate. He emphasized that nuclear energy will play a key role in Google's strategy to meet its carbon reduction goals and support its operations with round-the-clock clean energy. While wind and solar power are critical components of clean energy portfolios, they are intermittent sources of power. SMRs can provide a stable and reliable complement, helping tech companies like Google achieve their sustainability targets while meeting the enormous energy demands of AI-powered data centers.
Big Tech’s Growing Appetite for Energy
The tech sector’s rising energy consumption is increasingly driving the energy debate in the U.S. In recent years, the demand for power, especially from the construction of data centers to support artificial intelligence (AI), has surged. In response, tech giants have begun looking for reliable, scalable energy sources to fuel their growing infrastructure. Nuclear energy, long considered too expensive or slow to deploy, is now gaining traction as a viable solution.
Google’s agreement with Kairos Power follows other recent moves by tech companies into the nuclear sector. Last month, Microsoft teamed up with Constellation Energy to restart a reactor at Pennsylvania’s Three Mile Island, the site of the country’s worst nuclear accident, and earlier this year, Amazon purchased a data center at another Pennsylvania nuclear facility.
The 500 megawatts of power that Kairos will provide to Google is equivalent to powering a midsize city or one large AI data center campus. This level of capacity will be crucial in supporting Google's data-driven operations, which are expected to increase exponentially in the coming years as AI technology becomes more prevalent.
Addressing Challenges in Nuclear Energy
One of the major obstacles to the success of SMRs has been securing customers willing to pay the higher costs associated with first-of-its-kind projects. The partnership between Google and Kairos Power addresses that challenge head-on. Google’s commitment to purchasing power from the reactors provides a stable revenue stream that can help finance the reactors' construction. Over time, as more units are built and the production process becomes more standardized, costs are expected to decline, much as they have with wind and solar energy.
Kairos Power plans to deliver the reactors between 2030 and 2035, starting with a 50-megawatt unit and following up with three power plants that will each house two 75-megawatt reactors. Instead of using water as a coolant, the reactors will employ molten fluoride salt, a more advanced and efficient technology than traditional reactor designs. While this type of reactor presents certain regulatory challenges, Kairos has already secured clearance to build a demonstration reactor in Tennessee, which could be operational by 2027.
The Big Picture: Renewing U.S. Nuclear Power
The U.S. nuclear-power industry has struggled to develop new large-scale projects in recent decades, primarily due to the high costs and extended timelines required to build traditional reactors. The completion of the second reactor at Georgia’s Vogtle nuclear plant earlier this year marked the first large reactor to come online since 2016. Prior to that, the Tennessee Valley Authority finished its reactor project in 1996. Despite these challenges, nuclear energy still accounts for nearly 20% of the country’s power.
Advocates of nuclear power have long argued that stable, long-term customers like Google could help reduce the costs of nuclear energy, similar to the way corporate power-purchase agreements with renewable energy developers have driven down the costs of wind and solar. With this partnership, Kairos and Google are demonstrating that tech companies can play a crucial role in supporting the development of next-generation nuclear energy technologies.
Looking Ahead
While the construction of small modular reactors is still in its early stages, this partnership could signal a turning point for the U.S. nuclear-power industry. With data centers, manufacturing, and AI all driving unprecedented demand for power, the need for scalable, clean, and reliable energy solutions is more urgent than ever. While natural gas is expected to continue to play a role in the near term, the long-term goal of round-the-clock carbon-free energy will likely depend on innovative technologies like SMRs.
As Google and Kairos Power embark on this ambitious project, the world will be watching to see if SMRs can fulfill their promise of providing cost-effective, reliable nuclear power that helps fuel the next generation of technological advancements.
Hui Xin
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