Google signs agreement with nuclear firm amidst increasing demand for data center energy.

• Kairos Power will sell power to Google, as announced by the company on Monday.
• Nuclear energy is increasingly being utilized by tech companies to meet the growing power demands of data centers.
• Google said the first small modular reactor will come online by 2030.

Kairos Power, a small modular reactor developer, announced on Monday that it will sell power to tech companies looking to meet their growing energy demands from data centers.

Google announced that it will purchase power from a fleet of SMRs developed by Kairos Power. This move, according to the tech giant, sends an important demand signal to the market while also making a long-term investment to accelerate commercialization.

"According to Michael Terrell, senior director for energy and climate at Google, nuclear energy is crucial in supporting clean growth and AI progress. He stated that the grid requires clean and reliable sources of energy to support the development of these technologies. In his view, nuclear energy can play a significant role in meeting the demand for energy while maintaining cleanliness and consistency."

The company did not disclose the financial terms of the deal.

SMRs are a promising solution to the need for cost-effective nuclear power, but there are only three in operation worldwide, none in the U.S. The hope is that these small-scale reactors will avoid the budget and schedule overruns that have plagued large-scale nuclear projects in the past. However, the uncharted territory of SMRs means that there are still many unknowns to be addressed.

Kairos Power, founded in 2016 and backed by the Department of Energy, began construction on its Hermes Low-Power Demonstration Reactor in July 2021 in Oak Ridge, Tennessee. Unlike traditional nuclear reactors, Kairos Power uses molten fluoride salt as the reactor coolant.

Google announced that the first small modular reactor (SMR) will be operational by 2030, with additional reactors coming online by 2035. In total, 500 megawatts of capacity will be added to the grid. Although this is smaller than commercial reactors, such as Unit 4 at Plant Vogtle, which came online this year and is 1.1 gigawatts, there is a lot of momentum behind SMRs. Advocates cite lower costs, faster completion times, and location flexibility as reasons for their support.

Nuclear power is becoming increasingly popular among tech companies as they seek a reliable and emissions-free source of energy for their data centers. With its ability to provide constant power without emitting greenhouse gases, nuclear power is an attractive option for hyperscalers looking to meet their ambitious emissions-reduction targets.

Three Mile Island is restarting to power data centers, while Bill Gates, Sam Altman, and Jeff Bezos have all backed nuclear companies.

Google's emissions have increased by almost 50% compared to 2019, mainly due to the rise in data center power usage.

If we can successfully scale these projects globally, the benefits will be enormous and greatly benefit communities and power grids worldwide, according to Terrell.