Google's Nuclear Deal Powers the Future of AI
Google has taken a bold step in securing the energy needed to power its artificial intelligence (AI) data centres by signing a significant deal with Kairos Power.
The tech giant aims to harness small nuclear reactors (SMRs) to meet the massive energy demands of its AI operations.
Under the agreement, the first reactor is expected to go online by the end of this decade, with more reactors planned to follow by 2035.
Today we signed a pioneering agreement to purchase clean energy in the US from @KairosPower, a leader in building small modular nuclear reactors. It’s the latest step in our history of accelerating clean energy sources and will help support AI investments. https://t.co/euRuuIjgdk
— Sundar Pichai (@sundarpichai) October 14, 2024
By tapping into nuclear energy, Google joins a growing number of technology companies turning to alternative power sources to fuel their energy-hungry AI systems.
How Does Nuclear Energy Support AI Growth?
Artificial intelligence requires vast amounts of energy, and traditional power grids are struggling to keep up. According to Michael Terrell, Google’s senior director for energy and climate,
"The grid needs new electricity sources to support AI technologies."
Google’s agreement with Kairos Power is designed to provide a reliable and clean source of energy for their operations.
Terrell emphasised the importance of this partnership, stating,
"This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone."
By securing energy from small modular reactors, Google aims to ensure a steady supply of electricity to its data centres.
Nuclear energy is particularly attractive because it generates power around the clock, unlike intermittent renewable sources such as solar and wind.
As Terrell pointed out,
“The grid needs these kinds of clean, reliable sources of energy that can support the build-out of these technologies.”
Is Nuclear Energy Safe for AI Data Centres?
While nuclear energy offers many advantages, it is not without controversy.
Critics argue that nuclear power, despite being virtually carbon-free, still carries risks such as radioactive waste and the potential for accidents.
These concerns are magnified by historical events like the partial meltdown of the Three Mile Island reactor in 1979, which remains one of the most infamous nuclear accidents in the United States.
Even though the Nuclear Regulatory Commission declared no significant health impacts from the incident, the memory of the event still lingers in the public consciousness.
On this day in 1979, the Three Mile Island Unit 2 reactor experienced a partial meltdown. The unfolding of this would turn out to be one of the most significant events in commercial nuclear power history. Watch the full video at: https://t.co/hrmkhAlx3y pic.twitter.com/vKLJt2MjXJ
— NRC (@NRCgov) March 28, 2024
Despite these risks, tech companies like Google, Microsoft, and Amazon are increasingly turning to nuclear energy as a solution to the growing energy demands of AI.
Microsoft, for example, recently reached an agreement to restart operations at Three Mile Island, while Amazon is investing $650 million in a Pennsylvania data centre powered by nuclear energy.
These deals reflect the tech industry's confidence in nuclear energy’s ability to safely and reliably power the future.
What Role Do Small Modular Reactors Play?
Kairos Power’s small modular reactors (SMRs) are a key part of this nuclear strategy.
These reactors are designed to be more compact and easier to deploy than traditional nuclear plants, making them an appealing option for companies seeking to meet energy demands quickly and efficiently.
Google’s partnership with Kairos Power highlights the tech industry's growing interest in SMR technology.
Kairos co-founder and CEO Mike Laufer shared his enthusiasm about the deal, noting that it represents a critical step forward for the technology.
"We view this as a really significant partnership," Laufer said.
He emphasised the potential for SMR technology to mature over time, allowing companies like Google to meet their energy needs while also supporting the development of a more sustainable energy infrastructure.
While the technology shows promise, it is still in its early stages.
SMRs currently lack regulatory approval, which means that tech companies may continue to rely on existing nuclear plants in the short term while waiting for SMR technology to catch up.
However, as Laufer pointed out, this partnership allows SMR technology "to mature and learn along the way."
Tech Giants Compete for Nuclear Power
Google's deal with Kairos Power is part of a larger trend in the tech industry, with companies scrambling to secure clean energy sources for their AI operations.
In recent months, both Microsoft and Amazon have made significant investments in nuclear energy.
Microsoft’s deal to use energy from the Three Mile Island plant, for instance, will help power a grid that spans 13 states, an area under immense strain from the growing energy demands of AI data centres.
Microsoft is re-opening Three Mile Island to power a data center.
Tech giants are hiring their own nuclear engineering departments.
Integral to this is a resource that already has a structural supply deficit.
Why uranium is facing the perfect storm of supply and demand👇 pic.twitter.com/XdHf8UCRiE
— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) October 10, 2024
Amazon’s $650 million investment in a nuclear-powered data centre campus in Pennsylvania is another example of the lengths tech companies are going to secure reliable energy sources.
As AI continues to evolve, these massive data centres will require ever-increasing amounts of electricity, forcing companies to look beyond traditional energy solutions.
Nuclear energy, with its ability to generate large amounts of electricity 24/7, is becoming an increasingly attractive option.
Why Are Tech Companies Betting on Nuclear Energy?
Tech firms are turning to nuclear energy as they grapple with the environmental impact of their operations.
AI is a resource-intensive technology, and companies are under pressure to reduce their carbon footprints while still meeting the energy needs of their expanding data centres.
"There are more small modular reactors planned or under construction in America than anywhere else in the world, thanks in large part to enthusiasm from the tech industry."
Big tech is bringing nuclear power back to life @TheEconomist pic.twitter.com/YtvrcuuWYt
— James Pethokoukis ⏩️⤴️ (@JimPethokoukis) October 10, 2024
Nuclear power offers a way to achieve both goals—providing a steady, carbon-free source of energy that can keep up with AI's insatiable demands.
Terrell summed up Google’s approach during a recent briefing:
"We believe that nuclear energy has a critical role to play in supporting our clean growth and helping to deliver on the progress of AI."
The tech giant is confident that its investment in nuclear power will pay off in the long run, helping it scale its AI operations while also contributing to a more sustainable future.
As Terrell put it,
“This is an incredibly promising bet. If we can get these projects to scale and then scale globally, it will deliver enormous benefits to communities and power grids around the world.”