Google Partners with Kairos Power to Supply AI Data Centers with Nuclear Energy
Google signed a partnership with Kairos Power under PPA to supply 24/7 carbon free energy to AI data centers for enhanced AI technologies.
Google has signed an agreement to purchase nuclear energy from multiple small reactors (SMRs) developed by Kairos Power. This project is supported by funds of around $300 million from the Department of Energy (DOE). According to this agreement, Kairos power will develop a series of advance reactors to sell nuclear energy, ancillary services and environmental attributes to Google under Power Purchase Agreement (PPAs).
Power Purchase Agreement is a long-term bilateral contract between energy buyer (customer) and seller (energy producer). They agree to buy and sell an amount of energy produced from renewable assets. In this agreement, the energy producers develop, install, and operate the energy production on the consumer’s property.
This deal between Google and Kairos power will enable up to 500 MW of new 24/7 carbon-free power to U.S. electricity grids and will help the community to earn benefit from clean and carbon-free energy. By 2030, Kairos power is intended to bring the first SMR Online, followed by additional reactor deployment by 2035.
There are two main reasons behind this deal. The first reason is the requirement of new electricity sources for AI technologies. AI technologies are working for the betterment of the future by powering major scientific advances, enhancing services for businesses and customers and to drive towards national competitiveness and economic growth. This agreement will help in accelerating modern technology for energy sources to meet the carbon-free energy requirements and unlock the potential of AI for every individual.
The other reason behind this agreement was the need to decarbonize the electric grids. Nuclear solutions offer a clean power source that can lead towards the reliability to meet electricity demands with carbon-free energy. Advancing these power sources in partnership with local communities will rapidly drive the decarbonization of electricity grids supporting Google’s 24/7 carbon free energy and net zero goals.
Google’s agreement with Kairos Power highlighted the need for enormous energy demand for AI technologies with low carbon emission ensuring sustainability. Other tech giants like Microsoft have also signed an agreement to start nuclear facility in Pennsylvania and Amazon also has plans to get nuclear energy for Data Centers. AI technologies and the other data-intensive technologies demand high consumption of electricity while decreasing carbon emission.
Michael Terrell, Google Senior Director of Energy and Climate, stated, “This landmark announcement will accelerate the transition to clean energy as Google and Kairos Power look to add 500 MW of new 24/7 carbon-free power to U.S. electricity grids. This agreement is a key part of our effort to commercialize and scale the advanced energy technologies we need to reach our net zero and 24/7 carbon-free energy goals and ensure that more communities benefit from clean and affordable power in the future.”
“Having an agreement for multiple deployments is important to accelerate the commercialization of advanced nuclear energy by demonstrating the technical and market viability of a solution critical to decarbonizing power grids while delivering much-needed energy generation and capacity,” said Jeff Olson, Kairos Power Vice President, Business Development & Finance. “This early commitment from Google provides a strong customer demand signal, which reinforces Kairos Power’s continued investment in our iterative development approach and commercial production scale-up.”
Investing in advanced nuclear technology can also provide direct economic benefits to communities across the U.S. Nuclear power has the highest economic impact of any power generation source, according to the U.S. Department of Energy (DOE), and creates high-paying, long-term jobs. The agency estimates reaching 200 GW of advanced nuclear capacity in the U.S. by 2050 will require an additional 375,000 workers.
