Key Insights:

• Google secures 500 MW from small modular reactors, marking a major shift toward nuclear energy to power AI operations.
• AI’s rising energy demands drive Google to invest in advanced small modular nuclear reactors for reliable, clean electricity.
• Google’s partnership with Kairos Power targets the deployment of small modular reactors by 2030, ensuring round-the-clock clean energy.

Google has announced an agreement with Kairos Power to purchase electricity from small modular nuclear reactors (SMRs) as part of its efforts to meet the growing energy needs of artificial intelligence (AI). 

The agreement, the first of its kind, signals Google’s commitment to sourcing reliable, around-the-clock clean energy. This partnership with Kairos Power aims to bring its first reactor online by 2030, followed by additional reactors through 2035.

Under the deal, Google plans to purchase a total of 500 megawatts (MW) of power from six to seven SMRs, a capacity smaller than traditional nuclear reactors. Google representatives emphasized the potential of nuclear energy to meet increasing energy demands in a sustainable manner. 

“We feel like nuclear can play an important role in helping to meet our demand … cleanly in a way that’s more around the clock,” Michael Terrell, Google’s senior director for energy and climate, said in a press briefing.

Growing Energy Demand from AI Drives Nuclear Investments

Google’s move comes as tech companies face growing energy needs driven by AI. AI models require vast computational power, and data center energy consumption is projected to surge. 

According to estimates from Goldman Sachs, U.S. data centers are expected to need 47 gigawatts of additional generation capacity by 2030, up from current levels.

In response, several technology companies are turning to nuclear energy as a solution. In March, Amazon signed a deal for a nuclear-powered data center, while Microsoft recently entered into a power agreement with Constellation Energy. These developments reflect the increasing interest in nuclear power, particularly SMRs, as an alternative to natural gas, wind, and solar energy.

Kairos Power’s SMR Deployment Plans

Kairos Power, a company focused on developing advanced SMR technology, will need to secure several regulatory approvals before it can begin full-scale operations. The U.S. Nuclear Regulatory Commission (NRC) will need to approve both the design and construction of the reactors, which could take several years. 

However, Kairos has already made progress, receiving a construction permit for a demonstration reactor in Tennessee last year.

SMRs are designed to be smaller than traditional nuclear reactors, with components manufactured offsite to reduce costs and streamline construction. This modular approach aims to offer a more scalable solution to nuclear energy production, but critics argue that SMRs may still face challenges related to cost and nuclear waste management.

The potential for long-term nuclear waste storage remains a concern, as the U.S. lacks a permanent solution for nuclear waste disposal. Despite these challenges, Google’s agreement with Kairos is seen as a strategic long-term investment to meet its future energy needs, especially as AI-related demand continues to rise.

Long-Term Investment in SMR Technology

Google’s decision to engage in an order book framework with Kairos, committing to the purchase of multiple reactors, is an effort to signal demand and accelerate SMR development. Instead of purchasing one reactor at a time, the framework provides a clear demand for future energy capacity, which both companies believe will improve project cost-efficiency and adherence to schedules.

Kairos CEO Mike Laufer expressed confidence in the approach, stating, “We’re confident that this novel approach is going to improve the prospects of our projects being delivered on cost and on schedule.” Both companies view the partnership as a forward-thinking step towards reliable, clean energy solutions.