Google dives into nuclear energy with a strategic investment in small modular reactors (SMRs) from Kairos Power, aiming to fuel its data centers with reliable, round-the-clock, carbon-free electricity. Announced on Monday, the move signals the tech giant’s commitment to accelerating SMR deployment and addressing the soaring energy demands driven by artificial intelligence and cloud services.

“By procuring electricity from multiple reactors—what experts call an ‘orderbook’ of reactors—we will help accelerate the repeated reactor deployments that are needed to lower costs and bring Kairos Power’s technology to market more quickly,” said Michael Terrell, Google’s senior director of energy and climate.

A Safe Bet on Nuclear Power

Kairos Power’s reactors use TRISO fuel—a highly durable nuclear fuel formed into pebble-like pellets—and molten fluoride salt as coolant, ensuring passive safety in case of failure. The first operational reactor is expected to go live by 2030, with additional reactors planned through 2035. Altogether, these SMRs are projected to add 500 megawatts (MW) of carbon-free electricity to the US grid, enough to complement renewable sources like wind and solar power.

Unlike traditional nuclear plants, SMRs offer a modular design that promises to reduce construction time and cost. The Department of Energy supports Kairos Power’s efforts, recognizing SMRs as part of the solution to decarbonizing the grid while maintaining energy reliability.

The department is certain that the nuclear industry’s prospects are much “brighter today than they were five and ten years ago.”

Moreover, nuclear energy offers a consistent and reliable power source, unlike wind and solar power, which are subject to weather and time of day. This makes it an attractive option for data centers that require 24/7 power. “The grid needs these kinds of clean, reliable sources of energy that can support the build-out of these technologies,” Terrell noted.

Market Moves and Industry Impacts

Google’s investment sends a strong demand signal to the market. This is crucial because SMRs are still an emerging technology with only three operational reactors worldwide. However, Kairos Power is one of the few companies with designs approved by US authorities, positioning it well to lead the charge in this new frontier.

“We believe that nuclear energy has a critical role to play in supporting our clean growth and helping to deliver on the progress of AI,” Terrell added during the announcement.

Earlier this year, Microsoft struck a similar deal, purchasing power from the revived Three Mile Island plant, while Amazon secured nuclear-powered data centers through a partnership with the Susquehanna plant. The shift to nuclear energy is clearly to stabilize their operations without increasing their carbon footprint along with the ever-growing advancements in AI.

However, regulatory hurdles, construction risks, and market acceptance could slow progress. Google’s backing is expected to provide the financial and market credibility needed to push these reactors toward commercial success.

If successful, Google’s bet on nuclear energy could catalyze broader adoption across industries, driving down costs and easing the transition to a net-zero grid. With tech companies leading the charge, SMRs might soon become a cornerstone of the US energy landscape.