Google has signed an agreement with nuclear startup Kairos Power to build seven small nuclear reactors that will supply electricity to its data centers. The deal aims to add around 500 megawatts of carbon-free power, at a time when demand for electricity for data centers and artificial intelligence is on the rise. The new power plants are expected to come online later this decade.
Although Google has not specified whether the reactors will be connected directly to its data centers or will feed into the general power grid, the tech giant will join the likes of Microsoft and Amazon in transitioning to nuclear power to meet its growing energy needs. In September, Microsoft announced it would pay Constellation Energy to restarta reactor at Three Mile Island, shuttered since 2019, while Amazon also plans to build a data center directly connected to a nuclear plant in Pennsylvania.
Betting on small modular reactors
Kairos Power is part of a new wave of nuclear startups that are developing small modular reactors (SMRs) with the goal of reducing costs and speeding up the construction of nuclear plants. Unlike traditional huge nuclear facilities, which typically generate more than 1,000 megawatts andtake nearly a decade to build, SMRs promise faster and cheaper production.
The innovative design of Kairos includes the use of molten lithium fluoride and beryllium salts as the cooling system, instead of water, which represents an advance over conventional nuclear technologies. In this regard, the U.S. Nuclear Regulatory Commission has approved Kairos' plans for a 35-megawatt demonstration reactor, an achievement that other nuclear startups, such as Oklo, have yet to achieve. However, the company faces significant challenges. Although it has received regulatory approval, no small modular reactor is yet in commercial operation, leaving the economic viability of these projects in doubt. In addition, Kairos' molten-salt design deviates from decades of experience with water-cooled reactors, posing additional technical challenges.
Social and competitive challenges
Another challenge for Kairos could be public acceptance. According to Pew Research polls,56% of Americans support nuclear power, but 44% remain opposed, and this number could increase if reactors are built near residential areas. In addition, although support for nuclear power has grown, wind and solar power remain more popular and economical compared to new nuclear plants.
In an environment where nuclear fusion startups are also competing to develop large-scale plantsbefore 2035, Kairos faces a race against time to meet the Google deal and demonstrate that SMRs can be a viable solution for carbon-free energy in the future.