Google has signed a “world first” agreement to purchase energy from a fleet of small nuclear reactors, an important step toward meeting the increasingly burgeoning energy requirements fueled by artificial intelligence. The tech giant has agreed to purchase power from six or seven small modular reactors (SMRs) built by California-based company Kairos Power. The first will be operational by 2030, with the rest completed by 2035.

 

Why nuclear power?

 

Google is focusing on sustainable energy solutions for its continued role in technology development as the demand for electricity continues to soar in data centers. Nuclear power, according to the company, offers "a clean, round-the-clock power source that can help us reliably meet electricity demands.” The move towards nuclear energy is therefore part of Google's efforts to find low-carbon energy sources that can power the vast operations, including infrastructure for AI.

Michael Terrell, Google’s senior director for energy and climate, emphasized the importance of innovative energy sources to support the ongoing development of AI. "The grid needs new electricity sources to support AI technologies that are powering major scientific advances, improving services for businesses and customers, and driving national competitiveness and economic growth," he stated.

Google is not alone in relying on nuclear power as the primary source of energy to spur the company's growth. Microsoft has agreed to buy power from partially revived Pennsylvania's Three Mile Island nuclear plant. This is the site of the most serious nuclear meltdown in U.S. history and will be restarted to help power Microsoft's data centers. Amazon recently bought a Pennsylvania-based nuclear-powered data center from Talen Energy this year.

The financial terms of the deal, or at least the location of the new plants, are not disclosed. It is, however, known that Google will buy 500 MW of energy from Kairos, whose first demonstrator in Tennessee is expected to be ready by 2027.

Are small nuclear reactors the future?

 

SMRs like those Google is investing in are gaining attention for their potential to deliver reliable energy without the massive cost overruns associated with larger plants. These factory-built, modular reactors are designed to produce less energy—typically up to 300 MW—but can be constructed more quickly and at a lower cost than traditional nuclear plants.

Kairos Power's CEO, Mike Laufer, expressed confidence in the approach, noting that the company's model could help deliver projects on schedule and within budget. "We’re confident that this novel approach is going to improve the prospects of our projects being delivered on cost and on schedule,” Laufer said.

However, the technology is not without its critics. Some argue that SMRs may struggle to achieve the cost efficiency of larger reactors, which benefit from economies of scale. Environmental campaigners and some academics have also raised concerns, suggesting that investments in renewable energy sources, such as wind and solar, might offer a more effective way to meet clean energy goals.

 

A global shift toward SMRs

 

Despite the debate, the global interest in SMRs is growing. In the UK, the government is evaluating various companies bidding to develop SMR technology as part of efforts to revitalize the nuclear industry. Rolls-Royce, one of the lead players, has just won a deal with the Czech government to build its own SMR reactors, a win for the company. According to the company, the SMR from Rolls-Royce would have a smaller footprint and the ability to produce enough electricity for a million homes.

Supporters of SMRs argue that these reactors can complement larger nuclear plants by providing more flexible and scalable energy solutions. Unlike larger plants, SMRs require less cooling water and can be installed in a wider variety of locations, offering a versatile alternative as countries move away from fossil fuels.

While the potential of SMRs is yet to be fully realized, this deal signals a bold vote of confidence in the technology's role in the future of clean energy. As AI reshapes industries and further boosts energy demands, Google's step could well be one of the first in a line of similar partnerships in the tech world.