Google has taken a significant step toward meeting the growing energy demands of its data centers by signing a deal with nuclear startup Kairos Power to purchase power from a series of small modular reactors (SMRs). This decision marks a notable shift toward nuclear energy as tech companies look for cleaner, more reliable energy sources to support the rapid expansion of artificial intelligence (AI) and data-intensive operations. The deal, announced on Monday, underscores Google's ambition to address its increasing energy consumption while contributing to the development of carbon-free energy.
Kairos Power, a company founded in 2016 and backed by the U.S. Department of Energy, specializes in the development of small modular reactors that use molten fluoride salt as a coolant instead of the traditional water cooling method. This innovative design is expected to make nuclear power generation more efficient, cost-effective, and flexible. While only a handful of SMRs are currently operational worldwide, Google's partnership with Kairos Power aims to accelerate the commercialization of this technology. The company plans to have its first reactor online by 2030, with additional reactors to follow through 2035, providing a total of 500 megawatts of energy to the grid.
Michael Terrell, Google's senior director for energy and climate, emphasized the importance of nuclear energy in meeting the company's clean energy goals. "We believe that nuclear energy has a critical role to play in supporting our clean growth and helping to deliver on the progress of AI," Terrell said during a call with reporters. "The grid needs these kinds of clean, reliable sources of energy that can support the build-out of these technologies." Terrell added that the deal serves as an important signal to the market about the viability of SMRs as a scalable solution for meeting growing energy demands.
The growing demand for power from tech companies, particularly those operating hyperscale data centers, has placed increased pressure on traditional energy sources. As data centers require a constant and reliable supply of electricity, many companies are turning to nuclear energy as a carbon-free alternative to fossil fuels. Google is not alone in this pursuit-other tech giants, including Microsoft and Amazon, have also made investments in nuclear power to support their data center operations.
Earlier this year, Microsoft announced that it would purchase power from Constellation Energy to restart a reactor at Three Mile Island, a site that had been closed since 2019. Amazon has also made strides in the nuclear space by building a hyperscale data center connected directly to the Susquehanna nuclear power plant in Pennsylvania. These investments reflect the tech industry's growing reliance on nuclear power to meet its energy needs, particularly as companies aim to reduce their carbon footprints.
Google's emissions have surged by nearly 50% since 2019, largely driven by the increased energy consumption of its data centers. As the company expands its AI capabilities, it recognizes the need for a sustainable energy solution that can provide consistent power around the clock. Nuclear energy, with its ability to generate emissions-free baseload power, is seen as a key component in achieving these goals.
The SMRs that Google plans to purchase from Kairos Power are expected to provide a total of 500 megawatts of energy to the grid-significantly smaller than traditional commercial reactors but designed to be more cost-effective and faster to build. For comparison, the recently commissioned Unit 4 at Plant Vogtle in Georgia generates 1.1 gigawatts of power. Despite the smaller output, advocates of SMRs point to the technology's potential to revolutionize the nuclear industry by lowering costs, reducing construction time, and allowing for greater flexibility in terms of location.
While the partnership with Kairos Power is a major step forward, significant challenges remain. No commercial small modular reactors have been commissioned in the U.S., and the economics of SMRs are still largely unproven. Additionally, Kairos Power's use of molten salt as a coolant represents a departure from decades of industry experience with water-cooled reactors, adding a layer of uncertainty to the project.
Public opinion also poses a challenge for the expansion of nuclear power. While a Pew Research survey indicates that 56% of Americans support nuclear energy, 44% remain opposed, particularly when it comes to building reactors in their communities. Moreover, renewable energy sources like wind and solar enjoy broader public support and are currently more cost-effective than nuclear power.
