Sun. Dec 1st, 2024

Geneva, 15 October 2024

Google has signed the first-ever corporate agreement to source electricity from small modular reactors (SMRs) to power its AI operations. Partnering with Kairos Power, the tech giant plans to bring its first SMR online by 2030, with further installations expected by 2035. The innovative approach aims to ensure a reliable, around-the-clock supply of clean energy, addressing the growing energy demands triggered by the expansion of AI technology.

The agreement outlines Google’s commitment to purchasing 500 megawatts of power from six to seven SMRs, though details regarding the plants’ financial terms and locations remain undisclosed. The power output from these SMRs is significantly smaller than traditional nuclear reactors, but Google’s strategic investment signals a push toward long-term sustainability.

The tech industry’s focus on nuclear energy has gained momentum this year, with companies like Amazon and Microsoft entering similar agreements. According to Goldman Sachs, the demand for data centres in the US is expected to triple between 2023 and 2030. The surge in energy consumption has prompted technology companies to explore alternative energy sources, including nuclear, wind, and solar, to meet future needs.

Kairos Power must navigate regulatory hurdles, including securing permits from the US Nuclear Regulatory Commission (NRC) and local agencies, which could take several years. However, the company achieved a key milestone last year by obtaining a construction permit to build a demonstration reactor in Tennessee, signalling progress toward deploying SMRs.

Despite the enthusiasm for SMRs, critics point to potential challenges, including high costs and the production of long-lasting nuclear waste. However, Google’s decision to commit to an order book framework with Kairos rather than purchasing individual reactors represents a strategic investment to accelerate the development of SMRs while ensuring cost-effectiveness and timely project delivery.

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