Earlier this week, Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG), through its brand Google, signed an agreement to use nuclear reactors to generate power for its data centers. The multinational tech firm’s agreement with Kairos Power will see it begin to use its first nuclear reactor before 2030 as more come online by 20235.
Kairos Power specializes in developing small nuclear reactors which utilize molten fluoride salt as a coolant. This is different from conventional nuclear plants, which use water as a coolant. In 2023, the California-based nuclear tech firm was awarded a permit that’d allow it to construct a new type of nuclear reactor.
In July of this year, Kairos revealed that it’d began the construction of a demonstration reactor in Tennessee.
Google’s senior director for energy and climate, Michael Terrell, explained that the grid needed new sources of power to support AI tech. This agreement, he continued, would help meet energy needs reliably and cleanly while unlocking the full potential of artificial intelligence for everyone.
Jeff Olson, Kairos Power VP of Business Development and Finance, explained that the agreement would also expedite advanced nuclear energy commercialization by exhibiting its viability in decarbonizing power grids.
Before the two firms can proceed though, they need to obtain approval from the United States Nuclear Regulatory Commission as well as other local agencies. Nuclear power is essentially free of carbon and offers electricity around the clock. This has made it a popular option for the tech industry as companies work to reduce CO2 emissions while meeting the electricity needs of their data centers.
Google is one of many other companies that are considering the switch to nuclear energy. In September, Microsoft reached an agreement to renew operations at the Three Mile Island nuclear plant. This plant was the site of the worst nuclear accident to occur in the United States.
Earlier in the year, Amazon also announced that it was planning to purchase a data center powered by nuclear energy.
Goldman Sachs expects that by the end of the decade, global consumption of energy by data centers will have at least doubled. In a recent interview with the BBC, TechTarget’s Industry Editor John Moore explained that data centers needed significant amounts of electricity to keep equipment cool while also powering them.
At the country level, America joined other countries focused on expanding their nuclear energy capacity during the 2023 UN Climate Change Conference. This aligns with efforts to phase out the use of fossil fuels. Critics note that nuclear energy produces long-lasting radioactive waste, which means its use isn’t free of risk.
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