Google Signs Contract with US Small Modular Reactor Company... 'Electricity-Hungry Hippo' for AI Use

Google has signed a contract with a U.S. small modular reactor (SMR) company to secure the massive power required to operate artificial intelligence (AI). As big tech companies including Google are increasingly using nuclear power as an energy source for AI data centers, related demand is expected to continue rising.

[Image source=Reuters Yonhap News]

On the 14th (local time), Google announced that it had signed a contract to purchase energy from the U.S. startup Kairos Power's SMR. Accordingly, Google will secure a total of 500 megawatts (MW) of power from seven reactors operated by Kairos in the future. Amid fierce AI competition, this is the first time Google has signed a contract with a nuclear power company to secure the electricity needed to operate AI.

The Wall Street Journal (WSJ) reported, "500 MW is enough to supply power to a medium-sized city or an AI data center," adding, "The fate of the nuclear power industry is increasingly intertwined with big tech." Previously, Microsoft (MS) also signed a 20-year power purchase agreement with Constellation Energy, the largest nuclear power company in the U.S. Amazon also acquired a data center connected to the Talon Energy nuclear plant. Sam Altman, CEO of OpenAI and known as the 'father of ChatGPT,' is investing in Oklo, an SMR developer aiming to start operations in 2027.

The recent focus of big tech on nuclear power stems from the judgment that the currently available power cannot reliably support the electricity demand of AI data centers operating 24/7. Michael Terrell, Senior Director of Energy and Climate at Google Alphabet, said, "We believe nuclear power can play an important role in smoothly meeting our power demand," adding, "The ultimate goal is 24/7 carbon-free energy. To achieve this, technologies that complement wind, solar, and lithium-ion batteries are necessary."

Kairos plans to start reactor operations between 2030 and 2035. The company stated that specific financial details of the contract have not been disclosed, and the project site has not yet been finalized.