WASHINGTON, Oct 14 (Reuters) -
Alphabet's Google said on Monday it signed the
world's first corporate agreement to buy power from multiple
small modular reactors to meet electricity demand for artificial
intelligence.
The technology company's agreement with Kairos Power aims to
bring Kairos' first small modular reactor online by 2030,
followed by additional deployments through 2035.
The companies did not reveal financial details of the
agreement or where in the U.S. the plants would be built. Google
said it has agreed to buy a total of 500 megawatts of power from
six to seven reactors, which is smaller than the output of
today's nuclear reactors.
"We feel like nuclear can play an important role in helping
to meet our demand ... cleanly in a way that's more around the
clock," Michael Terrell, senior director for energy and climate
at Google, told reporters on a call.
Technology firms have signed several recent agreements with
nuclear power companies this year as artificial intelligence
boosts power demand for the first time in decades.
In March, Amazon.com ( AMZN ) purchased a nuclear-powered
datacenter from Talen Energy ( TLN ). Last month, Microsoft ( MSFT )
and Constellation Energy ( CEG ) signed a power deal to
help resurrect a unit of the Three Mile Island plant in
Pennsylvania, the site of the worst U.S. nuclear accident in
1979.
U.S. data center power use is expected to roughly triple
between 2023 and 2030 and will require about 47 gigawatts of new
generation capacity, according to Goldman Sachs estimates, which
assumed natural gas, wind and solar power would fill the gap.
Kairos will need to get full construction and design
permitting from the U.S. Nuclear Regulatory Commission as well
as permits from local agencies, a process that can take years.
Kairos late last year got a construction permit from the NRC
to build a demonstration reactor in Tennessee.
"The NRC is ready to efficiently and appropriately review
applications for new reactors," said Scott Burnell, an NRC
spokesperson.
Small modular reactors are intended to be smaller than
today's reactors with components built in a factory, instead of
onsite, to reduce construction costs.
Critics say SMRs will be expensive because they may not be
able to achieve the economy of scale of larger plants. In
addition, they will likely produce long-lasting nuclear waste
for which the country does not yet have a final repository.
Google said by committing to a so-called order book
framework with Kairos, instead of buying one reactor at a time,
it is sending a demand signal to the market and making a
long-term investment to speed development of SMRs.
"We're confident that this novel approach is going to
improve the prospects of our projects being delivered on cost
and on schedule," said Mike Laufer, CEO and co-founder of
Kairos.