Google Partners with Kairos Power for Nuclear Energy Deal for AI Data Centers

International Research and News Department 15-10-2024

Google has made headlines by entering into a pioneering agreement to source energy from a series of small nuclear reactors, aimed at powering its growing artificial intelligence operations.

The tech giant has placed an order for six or seven small modular reactors (SMRs) from California-based Kairos Power, with the first unit expected to be operational by 2030 and the remaining units slated for completion by 2035.

This initiative is part of Google’s strategy to secure a low-carbon energy solution for its data centers, which consume vast amounts of electricity.

A spokesperson for Google, a subsidiary of Alphabet, noted that nuclear energy offers a “clean, continuous power source” that can reliably meet the company’s electricity needs.

The surge in demand for generative AI and cloud storage has intensified energy requirements for technology firms. Recently, Microsoft announced a partnership to harness energy from the Three Mile Island nuclear plant in Pennsylvania, which had been dormant for five years following the infamous meltdown in 1979. Additionally, Amazon acquired a nuclear-powered data center from Talen Energy earlier this year.

Details regarding the locations of the new reactors and the financial aspects of the agreement remain undisclosed. Google is set to procure a total of 500 megawatts of power from Kairos, which was established in 2016 and is working on a demonstration reactor in Tennessee, scheduled for completion in 2027.

Michael Terrell, Google’s senior director of energy and climate, emphasized the need for innovative electricity sources to support AI technologies that drive scientific progress and enhance business services. “This agreement propels new technology forward to meet energy needs cleanly and reliably, allowing AI’s full potential to be unlocked for all,” he stated.

Kairos Power’s CEO and co-founder, Mike Laufer, expressed optimism that this innovative approach would improve the delivery timelines and cost efficiency of their projects.

Pending regulatory approvals, this deal signifies a strong endorsement of SMR technology. These compact, factory-built reactors are designed to minimize the cost overruns and delays typically associated with larger plants. However, some critics warn that SMRs may ultimately be more expensive due to their inability to achieve the same economies of scale.

In the UK, several companies are vying for government selection to advance their SMR technologies, as officials seek to revitalize the country’s nuclear sector. One contender, Rolls-Royce SMR, recently gained a significant advantage by being chosen by the Czech government to develop a fleet of reactors.