(Bloomberg) -- Alphabet Inc.’s Google is investing in the development of the next generation of nuclear power, backing a company that’s building small modular reactors and agreeing to purchase energy once the sites start supplying US grids.
Google signed an agreement with Kairos Power to construct a series of so-called SMRs that use molten-salt cooling technology. The move is part of an effort to bring online new carbon-free electricity as the company builds out data centers in the next decade, said Michael Terrell, senior director of energy and climate at Google. Power supplies are expected to start between 2030 and 2035.
The deal, which will back 500 megawatts of power, includes Kairos’s 50-megawatt demonstration Hermes project in Tennessee, followed by commercial scale reactors sized at 75 megawatts, the companies said.
Big technology companies are racing to line up power supplies for the massive data centers needed to run artificial intelligence systems. Surging demand for power is prompting utilities to build more natural gas-fired plants, undermining lofty environmental goals for both the industry and tech firms. It’s also driving up interest in nuclear plants that deliver clean energy at all hours.
“We are looking for net new clean power,” Terrell said. “We are not looking to repurpose existing clean power.”
Terrell described the Kairos agreement as the first of its kind, which includes power offtake on multiple SMRs, in an effort to kick start the development of the technology.He spoke during a virtual media roundtable on Monday.
Both Google and Kairos Power declined to comment on any financial terms or the structure of the deal.
The companies are still determining whether any projects will host two or more reactors.
©2024 Bloomberg L.P.