In the growing energy needs of its artificial intelligence (AI) data centers, Google has signed a deal with Kairos Power, a nuclear energy startup, to employ small nuclear reactors as a clean and reliable power source. The agreement marks a significant milestone in the tech industry’s transition to more sustainable energy solutions, with plans to bring the first reactor online within this decade and to expand further by 2035.
While financial details and the specific locations of the nuclear reactors remain undisclosed, the partnership represents a bold step in both nuclear energy’s re-emergence and the tech industry’s drive toward decarbonizing power consumption.
AI data centers, the backbone of cloud computing and modern technological infrastructure, require enormous amounts of electricity to operate. As AI workloads increase in scale and sophistication, so too does the need for consistent and reliable power sources. With the world’s energy grids already under pressure, technology companies are increasingly looking for innovative ways to meet their energy needs without exacerbating the climate crisis.
According to Michael Terrell, Google’s Senior Director for Energy and Climate, “The grid needs new electricity sources to support AI technologies. This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone.”
This growing demand is highlighted by projections from Goldman Sachs, which estimate that global energy consumption by data centers will more than double by 2030. This trend, driven by AI and other digital technologies, underscores the urgency of finding alternative energy sources that do not contribute to carbon emissions.
Kairos Power, based in California, has been at the forefront of next-generation nuclear technology development. The company’s unique approach revolves around the use of smaller, modular reactors that employ molten fluoride salt as a coolant, a key innovation that distinguishes them from traditional nuclear power plants, which rely on water for cooling.
These advanced reactors are designed to be safer, more efficient, and capable of being deployed in smaller settings, such as tech campuses or industrial hubs. In July, Kairos began constructing a demonstration reactor in Tennessee, which represents the first permit granted by U.S. regulators in 50 years to build a new type of nuclear reactor.
Jeff Olson, a Kairos executive, emphasized the importance of the Google deal, stating, “This agreement is important to accelerate the commercialisation of advanced nuclear energy by demonstrating the technical and market viability of a solution critical to decarbonising power grids.”
However, like any nuclear project, the reactors still face regulatory hurdles. Both the U.S. Nuclear Regulatory Commission and local government agencies will need to approve the plans before construction begins.
Google’s deal with Kairos Power is part of a broader trend in the tech industry’s quest to secure sustainable energy sources for data centers. As the pressure to decarbonize operations intensifies, more companies are considering nuclear power as a viable alternative to fossil fuels.
Nuclear power offers a unique advantage in the energy landscape. It is virtually carbon-free, produces energy 24 hours a day, and can supply the consistent power required by data centers to keep AI systems running without interruption. This reliability is crucial, as even brief outages or fluctuations can disrupt the massive computing operations that power AI algorithms.
John Moore, Industry Editor for TechTarget, explained the challenge AI data centers face in energy consumption: “These data centres are equipped with specialised hardware… that require lots of power, that generate lots of heat.” Efficient cooling systems and round-the-clock power are essential for maintaining the infrastructure, and traditional energy sources struggle to meet these demands without contributing to the climate crisis.
The environmental case for nuclear power is further strengthened by the increasing global push to reduce dependence on fossil fuels. At the United Nations Climate Change Conference last year, the U.S. joined a coalition of countries aiming to triple their nuclear energy capacity by 2050. This goal aligns with the broader push to decarbonize energy grids and transition to cleaner alternatives.
Google is not alone in its exploration of nuclear energy. Other tech giants are also making moves to incorporate nuclear power into their operations. In March 2024, Amazon announced plans to purchase a nuclear-powered data center in Pennsylvania, signaling its intent to harness the benefits of nuclear energy for its cloud computing operations. Meanwhile, Microsoft reached a deal in September to restart the Three Mile Island nuclear facility, the site of America’s most infamous nuclear accident in 1979, demonstrating a renewed interest in leveraging legacy nuclear assets for modern data needs.
These moves underscore the growing role that nuclear energy is expected to play in supporting the rapid expansion of AI and cloud computing technologies. The tech sector is responsible for a significant portion of global energy use, and as companies like Google, Amazon, and Microsoft ramp up their operations, they are also under increasing scrutiny to reduce their carbon footprints.
While nuclear power presents an appealing option for reducing carbon emissions, it is not without controversy. Critics argue that despite improvements in safety and efficiency, nuclear energy remains risky due to the potential for catastrophic accidents and the challenge of managing long-lasting radioactive waste.
The memory of disasters such as Chernobyl and Fukushima still looms large in public consciousness, and any expansion of nuclear power inevitably invites questions about safety. Furthermore, the issue of radioactive waste disposal remains a significant hurdle. Nuclear waste can remain hazardous for thousands of years, and finding secure, long-term storage solutions is a persistent challenge for the industry.
Environmental groups often cite these concerns in opposition to new nuclear projects, advocating instead for renewable energy sources like wind and solar. While these sources have made tremendous strides in recent years, they are still intermittent and unable to provide the round-the-clock power that AI data centers require. As a result, tech companies are left weighing the risks and benefits of nuclear power against the limitations of renewables.
As the tech industry continues to grow and AI technologies become increasingly integral to everyday life, the question of how to power this digital infrastructure sustainably will remain at the forefront of global discussions. Google’s partnership with Kairos Power represents a significant step in the exploration of nuclear energy as a solution to this challenge, but it also highlights the complexity of balancing innovation with environmental and safety concerns.
For Google, the deal with Kairos is not just about meeting its energy needs; it is about setting a precedent for the industry and demonstrating that advanced nuclear technology can play a key role in decarbonizing the energy grid. “This agreement helps accelerate a new technology to meet energy needs cleanly and reliably,” Terrell emphasized, pointing to the broader implications of the partnership.
The journey to decarbonize the tech industry’s energy consumption is still in its early stages, but with the backing of major players like Google, nuclear power could become a cornerstone of future energy strategies. As regulators, environmentalists, and industry leaders debate the best path forward, one thing is clear: the energy demands of AI and cloud computing will require bold, innovative solutions, and nuclear power is poised to play an increasingly prominent role in that future.
Google’s deal with Kairos Power to use small nuclear reactors for AI data centers is emblematic of a larger shift within the tech industry toward embracing nuclear energy as a means to meet growing power demands while reducing carbon emissions. As companies like Google, Amazon, and Microsoft explore this path, they must navigate regulatory challenges and public skepticism regarding nuclear power’s safety and waste management.
