Google Supports Kairos Power's Small Nuclear Reactors to Meet Energy Demand

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Oct 15, 2024
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As data center expansion continues, Google's electricity needs are increasing. To address this and advance nuclear energy in the U.S., Google has announced its support for nuclear startup Kairos Power to build seven small nuclear reactors. These reactors aim to provide 500 megawatts of nuclear power by the end of the decade, delivering stable and clean energy to Google's data centers. Kairos Power plans to deliver these reactors between 2030 and 2035, having already signed a power purchase agreement with Google.

Small Modular Reactors (SMRs) are seen as crucial for faster and cost-effective construction compared to traditional reactors. SMRs offer greater flexibility and adaptability to meet changing power demands. Kairos Power's innovative use of molten fluoride salt as a coolant, instead of water, is expected to enhance reactor safety and efficiency.

Google aims for 24/7 carbon-free energy and views nuclear power as a vital complement to wind, solar, and lithium-ion storage technologies. By supporting Kairos Power's small nuclear reactor initiative, Google not only addresses its own energy needs but also contributes to revitalizing the U.S. nuclear industry.

However, Kairos Power faces regulatory challenges, requiring approval from the U.S. Nuclear Regulatory Commission. They have obtained a permit for a demonstration reactor in Tennessee but must navigate further regulatory hurdles. Despite nearly 20% of U.S. electricity coming from nuclear power, high costs and extended timelines have halted large new projects, positioning Kairos Power’s small reactors as a significant industry innovation.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.