Google bets on nuclear power: World's first agreement on modular mini-reactors

In the pursuit of a sustainable energy footprint, Alphabet's Google has taken a groundbreaking step: the tech giant announced the world's first company contract to purchase energy from a series of small modular reactors. This alliance with Kairos Power aims to bring the first of these reactors online by 2030, followed by additional installations by 2035. Financial details of the agreement or the exact locations of the planned facilities have not yet been disclosed. The contract stipulates that Google will purchase a total of 500 megawatts of electricity from six to seven of these small-scale reactors. By doing so, Google is opting for nuclear power to meet the increasing, around-the-clock energy demands, particularly driven by the use of artificial intelligence, in an environmentally friendly way. "We believe nuclear energy can play an important role," said Michael Terrell, Senior Director of Energy and Climate at Google. The trend of technology companies forming partnerships with nuclear power companies is gaining momentum. Amazon.com acquired a nuclear-powered data center from Talen Energy in March. Last month, Microsoft entered into an energy agreement with Constellation Energy to revive a unit of the Three Mile Island nuclear plant in Pennsylvania, which was the site of perhaps the most serious nuclear accident in the U.S. in 1979. Goldman Sachs forecasts that the energy consumption of US data centers could triple between 2023 and 2030, requiring an additional capacity of around 47 gigawatts. While previous estimates anticipated the gap being filled by natural gas, wind, and solar energy, Google is now relying on the approvals of Kairos by US regulatory and local bodies. The company has already received a construction permit for a demonstration reactor in Tennessee but still needs permits for the design and construction of the new facilities. Critics warn that small modular reactors could pose economic challenges, as they may not achieve the cost benefits of large plants. Additionally, the long-term disposal of nuclear waste remains an unresolved issue. Google remains optimistic, and is sending a strong market signal through a purchase agreement under a contract-for-difference model. This is intended to accelerate the development of SMRs and ensure the projects are executed reliably within budget and timeframe. Kairos CEO Mike Laufer is confident that this novel approach improves the chances of successful project realization.