Google has penned a major, first-of-its-kind deal with Kairos Power to purchase nuclear energy produced by several small modular reactors as the tech company looks to secure power for artificial intelligence developments.
The deal was announced on Monday and is the world’s first corporate agreement for the purchase of nuclear energy from multiple SMRs. Google plans to purchase energy from a fleet of SMRs made by Kairos Power, with the first reactor coming online by 2030.
Additional reactors are expected to come online by 2035, supplying around 500 megawatts of power.
“Our partnership with Google will enable Kairos Power to quickly advance down the learning curve as we drive toward cost and schedule certainty for our commercial product,” Mike Laufer, Kairos Power’s CEO and co-founder, said in a statement. “By coming alongside in the development phase, Google is more than just a customer. They are a partner who deeply understands our innovative approach and the potential it can deliver.”
Unlike traditional reactors, which use water, the Kairos reactors use a molten-salt cooling system to transport heat into a steam turbine that then generates power.
The financial terms of the deal were not released on Monday, and it was not clear where the SMRs will be located. At the moment, there are no SMRs operational in the United States, and only three are operational in the world.
Google is expected to build or have data centers near the SMRs when the reactors come online to support its place in the AI race. However, the tech giant has yet to decide if it will receive the power directly or through the electric grid, according to the Wall Street Journal.
Energy demand from such data centers and other large facilities has soared in recent years, sparking concerns over strain on the grid, particularly as the use of traditional power sources like coal has decreased.
These data centers are estimated to use upward of 9% of electricity generated on the grid by 2030, over double what they consume now. Former energy regulators previously told the Washington Examiner that if these predictions stay true, the grid is nowhere near ready to handle that kind of demand.
Google itself admitted on Monday that the national grid needs to see new sources of electricity adopted in order to support and advance AI technology.
“This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone,” Google said, pointing to several benefits of nuclear compared to other green energy sources.
“Nuclear solutions offer a clean, round-the-clock power source that can help us reliably meet electricity demands with carbon-free energy every hour of every day,” the tech company said. “Advancing these power sources in close partnership with supportive local communities will rapidly drive the decarbonization of electricity grids around the world.”
Google joins the ranks of other tech giants looking to partner with energy companies to secure nuclear power to back their data centers.
Earlier this year, Amazon announced a purchase agreement with Talen Energy to purchase the decades-old Susquehanna nuclear plant, which is expected to provide up to 960 megawatts of power — enough to support around 1 million homes. In September, Microsoft and Constellation Energy announced a deal to restart the Three Mile Island plant, the site of the worst nuclear accident in U.S. history, to support Microsoft’s AI advancements.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Google hinted that it would follow suit earlier this month, with CEO Sundar Pichai saying: “We are now looking at additional investments, be it solar, and evaluating technologies like small modular nuclear reactors, etc.”
To move forward, Google’s deal with Kairos Power will require approval and permitting from the Nuclear Regulatory Commission.