In a groundbreaking move that could redefine the future of clean energy sourcing, Google, a subsidiary of Alphabet (GOOG), has announced a pioneering agreement with Kairos Power. This deal marks the world’s first corporate commitment to purchase power from multiple small modular reactors (SMRs), designed to fuel the burgeoning demands of artificial intelligence (AI) operations with round-the-clock clean energy.
Under the terms of the agreement, Kairos Power aims to have its initial SMR operational by 2030, with subsequent deployments planned through 2035. Though the financial specifics and exact locations for these reactors remain undisclosed, Google has committed to procuring 500 megawatts from this innovative nuclear technology, which promises more manageable and cost-effective nuclear power units.
Michael Terrell, Google’s senior director for energy and climate, highlighted the strategic importance of nuclear power in fulfilling Google’s continuous and substantial energy needs. “We believe nuclear power is crucial for meeting our demand in a consistently clean manner,” he stated during a media briefing, emphasizing the reliability and scalability of nuclear energy.
This agreement comes at a time when technology companies are increasingly turning to nuclear solutions due to the skyrocketing power requirements of AI and data centers. This year alone has seen significant moves in this sector, with Amazon (AMZN) securing a nuclear-powered data center and Microsoft (MSFT) partnering with Constellation Energy to revive a historic nuclear plant, underscoring a shift towards more sustainable energy solutions for tech giants.
The push towards nuclear power is also spurred by projections from Goldman Sachs (GS), which estimate U.S. data center power consumption could triple by 2030, necessitating an additional 47 gigawatts of capacity. Traditionally, this gap might have been filled by natural gas, wind, or solar, but the tech industry’s pivot towards nuclear reflects a new environmental and economic calculus.
However, the path to implementing these SMRs is not without hurdles. Kairos Power, despite receiving a construction permit for a demonstration reactor in Tennessee, must navigate a labyrinthine approval process with the U.S. Nuclear Regulatory Commission and local authorities. Critics question the economic viability and waste management of SMRs, pointing out potential issues with scaling and the long-term disposal of nuclear waste.
Despite these challenges, Google’s strategic investment through an “order book framework” with Kairos aims to accelerate the development of SMRs by providing a clear market demand signal. This approach not only potentially streamlines cost and scheduling but also positions Google at the forefront of sustainable energy innovation, potentially setting a precedent for other tech giants to follow.
Mike Laufer, CEO and co-founder of Kairos Power, expressed confidence in this novel procurement model, stating, “We’re confident that this approach will significantly enhance our project delivery in terms of cost and timeline.”
This collaboration between Google and Kairos Power could mark a pivotal moment, not just for the tech industry’s energy sourcing but also for the broader adoption of nuclear power in addressing global energy needs.
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