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Google Partners with Kairos Power: Powering AI Through Sustainable Nuclear Energy

Hannah Perry | October 15, 2024

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Google Embraces Nuclear Power for AI Development

In a strategic move that highlights the growing intersection of artificial intelligence (AI) technology and sustainable energy solutions, Google has partnered with privately held Kairos Power to harness the potential of nuclear energy. This collaboration comes on the heels of Microsoft‘s recent agreements to utilize nuclear power for its AI data centers. By obtaining 500 megawatts of electricity through a series of small modular reactors (SMRs), Google aims to ensure that its AI technologies have the energy foundation necessary to drive major scientific advancements.

Powering the Future with Small Modular Reactors

The initiative is particularly notable as it underscores the necessity for new, reliable electricity sources to support the burgeoning demands of AI applications. Michael Terrell, Google’s Senior Director of Energy and Climate, stated in a blog post that “the grid needs new electricity sources to support AI technologies that are powering major scientific advances.” Google’s choice of small modular reactors paves the way for a more adaptable and timely electricity generation approach, set to see its first reactor operational by 2030, with additional reactors scheduled for completion by 2035.

Microsoft’s Foray into Nuclear Power

Remarkably, Google is not alone in this trend. Microsoft announced a nuclear agreement with Constellation Energy back in September, aiming to source electricity from the infamous Three Mile Island nuclear plant in Pennsylvania. Though this site has a controversial history dating back to a partial meltdown in 1979, it plans to reactivate one of its reactors, which had been shuttered in 2019 for financial reasons, with hopes of bringing it back online by 2028. Together, these tech titans are exploring nuclear energy as a sustainable solution to power their growing data demands.

The Advantage of Smaller Reactors

Google’s selection of small modular reactors is designed to overcome the challenges typically associated with larger reactor projects, which can often involve significant lead times and complicated operational logistics. Terrell emphasized how “the smaller size and modular design can reduce construction timelines, allow deployment in more places, and make the final project delivery more predictable.” These characteristics could potentially facilitate quicker and more flexible responses to the increasing energy demands posed by advancing AI technologies.

Amazon Joins the Nuclear Energy Race

Moreover, Big Tech companies are increasingly eyeing nuclear as a low-carbon energy source. In a similar move, Amazon has secured a deal with Talen Energy for a site adjacent to one of its power plants. Amazon’s investment of $650 million will enable the e-commerce giant to obtain energy directly from Talen without relying on traditional grid connections. This demonstrates a broader trend among tech firms to seek environmentally responsible energy solutions amid growing regulatory scrutiny and consumer expectations.

Market Reactions and Stock Performances

The announcements regarding nuclear energy partnerships drew immediate attention in the stock market, elevating shares of nuclear power plant operators. On the day following Google’s announcement, Talen’s stock surged by 4.6%, closing at $167, while Vistra and Constellation enjoyed increases of 5.6% to $132 and 2.1% to $272, respectively. Alphabet, Google’s parent company, also experienced a slight uptick, ending the day with a 1% gain at $165. This reflects a growing investor confidence in the future of nuclear energy and its role in supporting tech giants’ ambitions in AI.

Conclusion: The Convergence of AI and Sustainable Energy

As technologies continue to evolve and demand greater energy resources, the collaboration between companies like Google and Kairos Power signifies a profound shift toward utilizing nuclear energy in a sustainable manner. With nuclear power potentially providing a stable, low-carbon electricity source, tech giants are positioning themselves not just to lead in AI innovation but also in the responsible advancements of energy consumption. With projected timelines for reactor startups well into this decade, stakeholders across multiple sectors will be watching to see how these developments unfold and shape the future landscape of technology and energy.