Google announced on Monday its decision to acquire power from Kairos Power, a developer of small modular reactors (SMRs), as technology firms increasingly explore nuclear energy to meet the rising energy demands of data centers.

The tech leader stated that it will source power from a series of SMRs produced by Kairos Power. Google emphasized that engaging with multiple SMRs sends a significant demand signal to the market and represents a long-term investment aimed at expediting commercialization.

"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," Michael Terrell, senior director for energy and climate at Google, said on a call with reporters. "The grid needs these kinds of clean, reliable sources of energy that can support the build out of these technologies. ... We feel like nuclear can play an important role in helping to meet our demand, and helping meet our demand cleanly, in a way that's more around the clock."

The financial specifics of the agreement were not revealed.

Currently, there are only three operational SMRs globally, with none located in the United States. The expectation is that SMRs will provide a more economical approach to expanding nuclear energy. Historically, large-scale nuclear reactor projects have faced budget overruns and delays, leading many to hope that SMRs will avoid similar challenges, although this remains largely untested.

Founded in 2016 and supported by the Department of Energy, Kairos Power commenced construction of its Hermes Low-Power Demonstration Reactor in Oak Ridge, Tennessee, in July. Unlike traditional nuclear reactors that utilize water for cooling, Kairos Power employs molten fluoride salt.

Google anticipates that the first reactor will be operational by 2030, with additional reactors expected to come online by 2035, contributing a total of 500 megawatts to the grid. While this capacity is significantly smaller than that of commercial reactors—such as Unit 4 at Plant Vogtle, which has a capacity of 1.1 gigawatts—there is considerable enthusiasm surrounding SMRs. Proponents highlight their lower costs, quicker completion timelines, and greater site adaptability.

This announcement further illustrates the increasing collaboration between technology companies and the nuclear sector. Data centers require continuous, reliable power, and currently, nuclear energy stands as the sole source of emissions-free baseload power. Many large-scale tech companies are pursuing ambitious emissions-reduction goals, prompting their interest in nuclear energy solutions.

Constellation Energy is set to reactivate the Three Mile Island facility to supply energy for Microsoft data centers, while Amazon has acquired a data center from Talen Energy that is powered by the Susquehanna nuclear power plant. Notable figures such as Bill Gates, Sam Altman, and Jeff Bezos have shown their support for nuclear energy companies.

Earlier this year, Google reported a nearly 50% increase in emissions compared to 2019, largely attributed to the rising energy demands of its data centers.

Terrell remarked, "This represents a highly promising opportunity, and if we can successfully scale these initiatives globally, they will provide significant advantages to communities and power grids worldwide."