Google backs construction of first small nuclear reactors to power AI data centers

10/16/2024 / By Richard Brown

Google has announced it will back the construction of seven small nuclear-power reactors in the U.S. as part of a groundbreaking deal aimed at addressing the tech giant’s growing demand for electricity to support artificial intelligence (AI) operations.

The deal will see Google purchase power from reactors built by nuclear-energy startup Kairos Power, helping to fuel both its own energy needs and a potential revival of nuclear power in the United States. Under the agreement, the search engine giant has committed to securing 500 megawatts (MW) of nuclear energy, with the first reactors expected to come online by the end of the decade.

The partnership seeks to develop and deploy small modular nuclear reactors (SMRs), a promising new technology that offers the potential for faster and more cost-effective construction compared to traditional large-scale nuclear plants. SMRs are smaller, more standardized units that can be mass-produced, theoretically driving down costs over time. (Related: Company backed by Bill Gates wants to deploy small modular nuclear reactors across U.S.)

“The end goal here is 24/7, carbon-free energy,” said Michael Terrell, senior director for energy and climate at Google. “To meet round-the-clock clean energy goals, we’ll need technologies that complement wind, solar and lithium-ion storage.”

The nuclear power industry is increasingly aligning itself with Big Tech as power demands rise in the U.S., driven largely by the expansion of AI and the need for more data centers. This shift has led tech companies like Google to seek new sources of energy to support their operations. The demand for power is expected to increase as AI technology continues to evolve, making energy-intensive data centers more common.

This isn’t Google’s first foray into energy deals. Last month, Microsoft inked a similar agreement with Constellation Energy to restart the undamaged reactor at Pennsylvania’s Three Mile Island, a site infamous for the U.S.’s worst nuclear-power accident. Amazon also purchased a data center at another Pennsylvania nuclear plant earlier this year.

Google’s AI operations require large amounts of electricity enough to power a city

The 500 MW of power that will be provided by Kairos for Google is roughly enough to power a midsize city, or one of Google’s AI data-center campuses. Google’s backing provides much-needed momentum for the emerging nuclear technology, allowing Kairos to move forward with the hope of achieving economies of scale.

Kairos plans to deliver its first reactors between 2030 and 2035, though financial details of the deal were not disclosed. The companies have entered into a power-purchase agreement, similar to the agreements that tech companies have historically made with wind and solar developers. The exact location of the reactors, or whether they will be spread across multiple sites, has yet to be determined.

Unlike traditional reactors that use water as a coolant, Kairos’ design uses molten fluoride salt, which is expected to offer safety and efficiency benefits. The reactors for Google will consist of one 50 MW reactor and three subsequent power plants, each housing two 75 MW reactors. For comparison, a typical large-scale nuclear plant has reactors that generate around 1,000 MW of power.

Although Kairos has received approval to build a demonstration reactor in Tennessee, which could start operating by 2027, the company will still have to navigate complex regulatory hurdles with the U.S. Nuclear Regulatory Commission. To prepare, Kairos is building test units at a manufacturing facility in Albuquerque, New Mexico, which will allow them to practice constructing and operating full-scale reactors.

Kairos CEO Mike Laufer emphasized that the demonstration project and the facility in Albuquerque will help the company avoid the spiraling costs that have plagued traditional nuclear projects in the past.

Currently, nuclear power provides nearly 20 percent of the electricity in the U.S., but the development of new large-scale nuclear projects has stalled due to prohibitive costs and long timelines. The completion of the second new reactor at Georgia’s Vogtle nuclear plant this spring was the first such success in the U.S. in years, with the previous reactors being completed in 2016 and 1996.

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Watch this CNBC report about Google inking an agreement with Kairos Power.

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