On Monday, Alphabet’s Google announced a pioneering corporate agreement to procure power from multiple small modular reactors (SMRs) to support its growing electricity demands for artificial intelligence operations. This landmark deal with Kairos Power aims to bring the first of Kairos’ SMRs online by 2030, with plans for additional reactors to be deployed through 2035.
While the financial specifics of the agreement were not disclosed, Google revealed its commitment to acquiring a total of 500 megawatts of electricity from six to seven of the smaller reactors, which produce less power than conventional nuclear facilities.
Michael Terrell, Google’s senior director for energy and climate, emphasized the potential of nuclear energy in meeting the company’s demand for clean, reliable power. “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,” he stated during a press call.
This agreement comes amid a surge in power demand driven by the rise of artificial intelligence, prompting technology companies to explore various nuclear power arrangements. Earlier this year, Amazon.com signed a deal for a nuclear-powered data center with Talen Energy, while Microsoft partnered with Constellation Energy on a power agreement to revive a unit at the Three Mile Island plant in Pennsylvania, site of the 1979 nuclear accident.
According to Goldman Sachs estimates, power consumption by U.S. data centers is projected to triple between 2023 and 2030, necessitating approximately 47 gigawatts of new generation capacity. The firm predicts that natural gas, wind, and solar power will primarily fulfill this demand.
However, before construction can commence, Kairos must secure full construction and design permits from the U.S. Nuclear Regulatory Commission (NRC) and local agencies, a process that can extend over several years. In late 2022, Kairos received a construction permit from the NRC for a demonstration reactor in Tennessee.
Scott Burnell, a spokesperson for the NRC, noted that the commission is prepared to efficiently evaluate applications for new reactors.
Designed to be smaller and more cost-effective, SMRs are built with components fabricated in a factory setting rather than onsite. This modular approach aims to reduce construction expenses. Nonetheless, critics argue that SMRs could be costly and may not achieve the economies of scale that larger plants can offer. Additionally, they raise concerns over the long-lasting nuclear waste generated, for which the U.S. currently lacks a permanent disposal solution.
By committing to an order book framework with Kairos—rather than acquiring one reactor at a time—Google is signaling its demand to the market and making a long-term investment to expedite the development of small modular reactors. Mike Laufer, CEO and co-founder of Kairos, expressed confidence in this innovative approach, asserting that it would enhance the likelihood of delivering projects on budget and on schedule.
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