Google Inks Deal With Nuclear Company As Data Center Power Demand Surges

Google announced it will purchase power from Kairos Power's small modular reactors (SMRs) to support its clean energy goals and data center demands. The company did not disclose the financial terms of the deal. CNBC reports: There are only three SMRs that are operating in the world, and none in the U.S. The hope is that SMRs are a more cost-effective way to scale up nuclear power. In the past, large, commercial-scale nuclear reactor projects have run over budget and behind schedule, and many hope SMRs won't suffer that same fate. But it is uncharted territory to some extent. Kairos Power, which is backed by the Department of Energy, was founded in 2016. In July, the company began construction on its Hermes Low-Power Demonstration Reactor in Oak Ridge, Tennessee. Rather than use water as the reactor coolant -- as is used in traditional nuclear reactors -- Kairos Power uses molten fluoride salt.

Google said the first reactor will be online by 2030, with more reactors going live through 2035. In total, 500 megawatts will be added to the grid. That's much smaller than commercial reactors -- Unit 4 at Plant Vogtle, which came online this year, is 1.1 gigawatts, for example -- but there's a lot of momentum behind SMRs. Advocates point to lower costs, faster completion times, as well as location flexibility as reasons. Monday's announcement is another example of the growing partnership between tech companies and nuclear power. Data centers need 24/7 reliable power, and right now nuclear is the only source of emissions-free baseload power. Many hyperscalers have ambitious emissions-reduction targets, which is why they're turning to nuclear power.

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