Big Tech after nuclear power; Google to set up reactors at AI centres

Google has announced a deal to use small nuclear reactors to supply the energy demands of its artificial intelligence (AI) data centres. This agreement with Kairos Power, a mission-driven engineering firm dedicated to providing clean, affordable, and safe energy solutions through the integrated design, licensing, and demonstration of advanced reactor technologies, aims to have the first reactor operational within this decade, with additional reactors expected by 2035. However, the companies have not disclosed any financial details or the locations for the plants.

As technology firms increasingly seek nuclear energy to power their extensive data centres, Michael Terrell, Google's senior director for energy and climate, stated, "The grid needs new electricity sources to support AI technologies. This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, unlocking the full potential of AI for everyone."

Kairos Power executive Jeff Olson said that the partnership is crucial for demonstrating the viability of advanced nuclear energy, which is essential for decarbonising power grids. The plans still require approval from the US Nuclear Regulatory Commission and local authorities before moving forward.

First company in 50 years

Last year, Kairos Power became the first company in 50 years to receive a permit to build a new type of nuclear reactor in the US. In July, they began constructing a demonstration reactor in Tennessee. The company focuses on developing smaller reactors that use molten fluoride salt as a coolant, in contrast to the water used by traditional nuclear plants.

With global energy consumption by data centres projected to more than double by the end of the decade, nuclear power—being virtually carbon-free and capable of providing round-the-clock electricity—has gained traction in the tech industry as it seeks to reduce emissions while meeting increasing energy needs. 

John Moore, Industry Editor at TechTarget, explained to the BBC that AI data centres require substantial electricity to power their systems and keep them cool, as they use specialised hardware that generates significant heat.

At last year’s United Nations Climate Change Conference, the US joined a coalition of countries aiming to triple their nuclear energy capacity by 2050 as part of the effort to transition away from fossil fuels. However, critics argue that nuclear power carries risks and produces long-lasting radioactive waste.

Microsoft's deal

Recently, Microsoft announced a deal to restart operations at the Three Mile Island plant, site of America's worst nuclear accident in 1979, while Amazon has also revealed plans to acquire a nuclear-powered data centre in Pennsylvania.