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Google Strikes Nuclear Power Deal to Fuel AI Data Centres

Google has entered into a groundbreaking agreement with nuclear technology company Kairos Power to use small nuclear reactors to meet the growing energy demands of its artificial intelligence (AI) data centres. The move marks a significant shift as tech giants seek reliable and clean energy sources to support their expanding operations.

The deal, which will see Google utilise its first reactor later this decade and add more by 2035, aligns with the company’s goal of powering its data centres sustainably. Although financial details and specific reactor locations have not been disclosed, the partnership aims to address the increasing energy consumption driven by AI technologies.

Michael Terrell, Google’s senior director for energy and climate, emphasised the importance of adopting new energy solutions. “The grid needs new electricity sources to support AI technologies,” Terrell said. “This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone.”

Jeff Olson, an executive at Kairos Power, highlighted the deal’s role in advancing nuclear energy innovation. “This partnership is crucial for demonstrating the technical and market viability of advanced nuclear energy, which is essential for decarbonising power grids,” Olson said.

The agreement is subject to regulatory approvals, including clearance from the U.S. Nuclear Regulatory Commission. Kairos Power is currently building a demonstration reactor in Tennessee, after securing the first permit for a new type of nuclear reactor in 50 years.

Kairos Power’s reactors are designed to be smaller and use molten fluoride salt as a coolant, rather than the water used in traditional nuclear plants. The company aims to develop reactors that are safer and more efficient than conventional systems.

As tech companies like Google, Microsoft, and Amazon grow increasingly reliant on AI, their energy needs have surged. Data centres, essential for powering AI technologies, require large amounts of electricity not only to operate but also to keep equipment cool. This has driven the tech industry to explore nuclear power as a clean and reliable alternative to fossil fuels.

In the broader context of clean energy, the U.S. and other nations have committed to expanding nuclear power. At last year’s United Nations Climate Change Conference, the U.S. joined a coalition of countries aiming to triple nuclear capacity by 2050 as part of global efforts to reduce emissions.

However, the growing reliance on nuclear power is not without controversy. Critics argue that nuclear energy carries risks, including the production of long-lasting radioactive waste.

Despite these concerns, major tech firms continue to invest in nuclear energy. Microsoft recently announced a deal to restart the Three Mile Island energy plant, site of the 1979 nuclear accident, while Amazon has committed to buying a nuclear-powered data centre in Pennsylvania.

As Somnath Kansabanik from Rystad Energy noted, “Google’s partnership with Kairos Power signals another major step in tech’s embrace of nuclear energy.” With global data centre energy consumption expected to more than double by the end of the decade, the tech industry’s pivot toward nuclear could become an essential part of the future energy landscape.

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