Google announced an unprecedented deal that involves investing in nuclear-powered data centers in partnership with the California-based firm Kairos Power.

Kairos operates a fleet of small modular reactors (SMRs). The agreement involves the activation of six to seven of these units with the first one being expected to come online by 2030 while the remainder would start operating within the next five years.

The deal marks a landmark moment for the data center industry and Google has claimed the title of the “world’s first” company to enter that type of agreement. The agreement comes at a time when data centers are eating up unbelievable amounts of electricity, contributing to climate change. Nuclear energy has its issues, namely the potential for disaster and the toxic waste problem, but it is much safer and greener than fossil fuels.

Kairos Power will reportedly generate up to 500 MW for the tech giant. The method allegedly produces no carbon footprint, one of the biggest benefits of nuclear energy. The financial details of the deal were not disclosed at the time but sources claim that the investment is significant, even for a company like Google.

Michael Terrell, senior director for energy and climate at Google, explained the rationale: “The grid needs new electricity sources to support AI technologies that are powering major scientific advances, improving services for businesses and customers, and driving national competitiveness and economic growth.”

Microsoft and Amazon Have Also Invested in Nuclear Plants

The data center industry is demanding a significant amount of energy that is already straining the US power grid amid the rise of artificial intelligence and cloud computing. With this deal, Google seems to be taking a pre-emptive step to make sure they have the capacity to undertake the heavy computing workloads that new technologies are requiring.

John Moore, Industry Editor for the TechTarget website commented: “These data centers are equipped with specialized hardware… that require lots of power, that generate lots of heat.” Cooling the hardware alone is extremely energy-intensive and it requires an unbelievable amount of water.

Projections from Goldman Sachs indicate that data centers will double their energy consumption by the end of the next decade. This highlights the urgent need for sustainable and high-capacity power sources that are both environmentally friendly and scalable.

CEO Sundar Pichai acknowledged this in a recent interview: “Obviously, the trajectory of AI investments has added to the scale of the task needed. We are now looking at additional investments, be it solar, and evaluating technologies like small modular nuclear reactors, etc.”

Google’s ambitious climate goals are also influencing the company’s decision to invest in nuclear power as they have set the goal of supplying carbon-free energy around the clock to its facilities by 2030 and reducing its greenhouse emissions by half by that same year compared to its 2019 footprint.

Other companies in the tech sector are embracing these pledges and initiatives as well. Microsoft (MSFT) signed an agreement to revive the Three Mile Island plant while Amazon Web Services – the firm’s cloud infrastructure arm – announced the purchase of a nuclear power plant in the state of Pennsylvania.

These moves indicate an ongoing sector-wide trend to embrace environmentally-friendly energy sources that can supply as much power as needed for data centers to support the huge demand that is coming from new technologies like AI.

SMRs Are Safer and More Affordable Than Traditional Reactors

The technology developed by Kairos represents a significant leap in the design of nuclear reactors. Old technology used water as a coolant. However, Kairos’s SMRs use molten salt. They also employ ceramic, a different kind of fuel, and the system has been designed to operate with low pressures to reduce risks and costs.

However, the US Nuclear Regulatory Commission and local authorities still need to give Google and Kairos the green light before the agreement can proceed. These procedures are often lengthy and may delay the implementation and adoption of nuclear power.

Also read: The World’s Largest Data Centers: Their Facts and Stats

Jeff Olson, Kairos Power’s vice president of business development and finance, emphasized the importance of Google’s commitment: “Having an agreement for multiple deployments is important to accelerate the commercialization of advanced nuclear energy by demonstrating the technical and market viability.”

Other companies may follow Google in this path, which would mean new business to Kairos on short notice as long as regulators vet the deal.

Analysts Emphasize That This Trend Could Mean the Beginning of a New Era

The shift toward nuclear-powered data centers could have far-reaching implications for the future of the tech industry and energy sector. As more tech companies turn to this source, the energy landscape and the demand that the US power grid currently faces could be modified drastically.

Somnath Kansabanik from research firm Rystad Energy noted: “Google’s partnership with Kairos Power signals another major step in tech’s embrace of nuclear energy.” This trend could accelerate the transition away from fossil fuels.

Nuclear energy could play a crucial role in decarbonizing the tech sector. However, critics argue that nuclear power, while carbon-free, is not entirely risk-free and produces radioactive waste that is virtually impossible to get rid of. These concerns will need to be addressed as the technology scales up but most experts agree that the benefits of nuclear power (namely efficiency and lack of emissions) greatly outweigh the negatives.

The broader impact of this move extends beyond the tech industry. According to the US Department of Energy, nuclear power has the highest potential economic impact of any power generation source. And this will likely only get better and better as companies like Kairos work to make much more affordable small reactors.

Also read: Big Tech Caught Massively Underestimating Data Center Emissions

The agency estimates that reaching 200 GW of advanced nuclear capacity in the US by 2050 will require an additional 375,000 workers. By investing in domestic nuclear power, tech companies could contribute to greater energy independence and security for the country.

Moreover, this move could catalyze broader adoption of advanced nuclear technologies and potentially accelerate the global transition to clean energy.

Google’s groundbreaking investment in nuclear-powered data centers represents a significant shift in how tech companies approach their energy needs. By embracing advanced nuclear technology, Google is not only addressing its growing power demands but also potentially reshaping the future of clean energy.

As Michael Terrell of Google stated: “This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone.”

The success of this initiative could pave the way for more tech companies to follow suit. As the technology is progressively developed and scaled, companies like Google will have to address environmental concerns, ensure regulatory compliance, and raise awareness about the benefits of this move.