Alphabet's Google Says Signs Deal To Buy Nuclear Power From Small Modular Reactors To Be Developed By Kairos Power; Alphabet And Kairos Say Deal Is For 500 Megawatts Of Power From SMRS; Agreement Intends To Bring Kairos Power's First SMR Online By 2030, With More Deployments Through 2035

https://www.reuters.com/technology/artificial-intelligence/google-buy-power-small-modular-nuclear-reactor-company-kairos-ai-needs-2024-10-14/#:~:text=WASHINGTON%2C%20Oct%2014%20(Reuters),electricity%20demand%20from%20artificial%20intelligence.

 

Alphabet's (GOOGL.O), opens new tab Google said on Monday it signed the world's first corporate agreement to buy power from multiple small modular reactors as the technology company looks to meet electricity demand from artificial intelligence.

The agreement with Kairos Power aims to bring Kairos' first small modular reactor online by 2030, followed by additional deployments through 2035.

The companies did not reveal financial details of the agreement or where in the U.S. the plants would be built. Google said it has agreed to buy 500 megawatts of power from six to seven reactors, which is smaller than the output of today's nuclear reactors.

"We feel like nuclear can play an important role in helping to meet our demand ... cleanly in a way that's more around the clock," Michael Terrell, senior director for energy and climate at Google, told reporters on a call.

Technology firms have signed several recent agreements with nuclear power companies this year as artificial intelligence boosts power demand for the first time in decades.

In March, Amazon.com (AMZN.O), opens new tab purchased a nuclear-powered datacenter from Talen Energy (TLN.O), opens new tab. Last month, Microsoft (MSFT.O), opens new tab and Constellation Energy (CEG.O), opens new tab signed a power deal to help resurrect a unit of the Three Mile Island plant in Pennsylvania, the site of the worst U.S. nuclear accident in 1979.

U.S. data center power use is expected to roughly triple between 2023 and 2030 and will require about 47 gigawatts of new generation capacity, according to Goldman Sachs estimates, which assumed natural gas, wind and solar power would fill the gap.

The Google deal will depend on Kairos getting full permitting from the U.S. Nuclear Regulatory Commission and local agencies.

Kairos late last year got a construction permit from the NRC to build a demonstration reactor in Tennessee. But Kairos needs design and construction permits from the NRC for the reactors in the deal announced on Monday.

Small modular reactors are intended to be smaller than today's reactors with components built in a factory, instead of onsite, to help cut construction costs.

Critics say SMRs will be expensive because they may not be able to achieve the economy of scale of larger plants. In addition, they will likely produce long-lasting nuclear waste for which the country does not yet have a final repository.

Google said by committing to a so-called order book framework with Kairos, instead of buying one reactor at a time, it is sending a demand signal to the market and making a long-term investment to speed development of SMRs.

 

"We're confident that this novel approach is going to improve the prospects of our projects being delivered on cost and on schedule," said Mike Laufer, CEO and co-founder of Kairos.