Alphabet Inc.’s Google has announced a groundbreaking agreement to procure electricity from small modular reactors, marking a significant move in the tech giant’s commitment to meet the rising energy demands of its artificial intelligence initiatives. The deal, which is being hailed as the world’s first corporate agreement of its kind, was revealed on Monday in collaboration with Kairos Power.
Under the terms of the agreement, Google aims to bring Kairos’ initial small modular reactor (SMR) online by 2030, with plans for additional reactors to follow by 2035. Although specific financial details and the locations of the proposed plants have not been disclosed, Google has committed to purchasing a total of 500 megawatts of power from six to seven reactors, each of which will have a smaller output compared to conventional nuclear reactors.
Michael Terrell, Google’s senior director for energy and climate, emphasized the potential of nuclear energy to sustainably and reliably meet the company’s growing electricity demands. “We feel like nuclear can play an important role in helping to meet our demand in a clean way that operates around the clock,” he stated during a press call.
This partnership is part of a broader trend among technology companies seeking to secure nuclear power sources as they navigate increased energy requirements driven by artificial intelligence advancements. Earlier this year, Amazon made headlines by purchasing a nuclear-powered data center from Talen Energy. Meanwhile, Microsoft and Constellation Energy entered into a deal aimed at revitalizing a unit of the Three Mile Island plant, which famously experienced a catastrophic incident in 1979.
According to Goldman Sachs estimates, U.S. data center power consumption is projected to triple between 2023 and 2030, necessitating approximately 47 gigawatts of new generation capacity. While the energy landscape is expected to be filled primarily by natural gas, wind, and solar power, nuclear energy is increasingly viewed as a crucial component of this mix.
Kairos Power will need to secure comprehensive construction and design permits from the U.S. Nuclear Regulatory Commission (NRC) as well as approvals from local agencies—a process that can be lengthy and complex. Notably, Kairos recently received a construction permit from the NRC to build a demonstration reactor in Tennessee.
Scott Burnell, an NRC spokesperson, reassured stakeholders that the commission is prepared to “efficiently and appropriately review applications for new reactors.”
Small modular reactors are designed to be more compact than traditional nuclear reactors, with significant components manufactured offsite to lower construction costs. However, critics raise concerns about the potential high costs associated with SMRs, arguing that they may not achieve the economies of scale that larger nuclear plants offer. Additionally, the issue of long-lasting nuclear waste remains unresolved, as the U.S. lacks a definitive repository for such materials.
As the partnership between Google and Kairos Power unfolds, the implications for the tech industry’s energy strategy and the future of nuclear power in America will be closely watched.
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