Google has announced a groundbreaking agreement with Kairos Power, a California-based startup, to develop small nuclear reactors as part of its plan to meet the growing electricity demands of artificial intelligence (AI) technologies. The deal, revealed on Monday, marks a significant step in the tech giant’s efforts to secure reliable and clean energy sources for powering its data centers, which are essential for AI operations.
Under the terms of the agreement, Kairos Power will construct seven small nuclear reactors, with a combined capacity of 500 megawatts. The first reactor is expected to be operational by 2030, and the remaining reactors will be developed in subsequent years. These small modular reactors are viewed as a promising alternative to traditional large-scale nuclear reactors, offering a more cost-effective and time-efficient solution.
Michael Terrell, Google’s senior director of energy and climate, highlighted the importance of new energy sources to support the rapidly advancing AI industry. “The grid needs new electricity sources to support AI technologies that are powering major scientific advances, improving services for businesses and customers, and driving national competitiveness and economic growth,” Terrell said in a statement. He emphasized that the deal with Kairos Power is key to accelerating the development of innovative nuclear technology, ensuring clean and reliable energy to unlock the full potential of AI.
This move by Google reflects a broader trend among tech companies that are increasingly turning to nuclear energy to power their data centers. Last month, Microsoft entered into a 20-year agreement with Constellation Energy to restore a decommissioned nuclear reactor at Three Mile Island in Pennsylvania. Amazon also struck a deal with Talen Energy earlier this year, securing a 1,200-acre data center campus in Pennsylvania powered by a nearby nuclear plant.
Data centers currently consume about 3% of the world’s electricity, and this number is expected to rise sharply as AI technologies continue to evolve. Small modular reactors, though still in the early stages of development, are seen as a promising solution to meet these growing energy needs. Currently, only three such reactors are operational worldwide, in Russia, China, and India.
Kairos Power CEO Mike Laufer praised the partnership with Google, stating that the collaboration would help the company quickly advance its technology. He described Google as more than just a customer, calling them a partner with a deep understanding of the company’s innovative approach and its potential to transform the energy landscape.
