Google recently announced its power purchase agreement with Kairos and the Tennessee Valley Authority (TVA) to help meet America’s growing demand for dependable, clean energy. Under a new power purchase agreement between Kairos and TVA, the companies will deploy an advanced nuclear reactor, Hermes 2, in Oak Ridge, TN.
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The public-private collaboration will deliver up to 50 megawatts (MW) of round-the-clock carbon-free energy to the TVA grid that powers Google’s data centers in Alabama and Tennessee. After announcing a partnership with nuclear energy developer Kairos Power last fall, Google’s operations are scheduled to begin in 2030. TVA is the first utility in the U.S. to purchase electricity from an advanced, Gen IV reactor.
Ultimately, Google is aiming for 500 MW of reactor-generated power to come online by 2035 to meet its rising load needs, to be supplied by Kairos. The tech giant is turning to small modular reactors (SMRs) to decarbonize its data center activities.
“To power the future, we need to grow the availability of smart, firm energy sources,” Amanda Peterson Corio, Google’s Global Head of Data Center Energy, said in the press release. “This collaboration with TVA, Kairos Power, and the Oak Ridge community will accelerate the deployment of innovative nuclear technologies and help support the needs of our growing digital economy while also bringing firm carbon-free energy to the electricity system.”
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On May 8, Kairos made history by pouring the first nuclear safety-related concrete for the Hermes Low-Power Demonstration Reactor in Oak Ridge, marking the commencement of nuclear construction on the project.
Hermes is the first SMR to receive authorization for construction from the U.S. Nuclear Regulatory Commission.
Kairos’s success coincides with a growing embrace of SMRs. As the industry ditches the large nuclear power plants of the past, interest in smaller, more compact reactors is ushering in a new wave of nuclear construction in the country. This is especially true for private-sector companies like Alphabet’s Google, which are investing in advanced technology to secure a steady stream of clean energy for their artificial intelligence operations.
TVA noted that Google’s support is not just a win for the company but also for TVA’s ten million customers in the U.S., since the tech giant would be bearing the financial burden of developing the technology. Additionally, the project will expand economic opportunities in the Oak Ridge community by creating high-paying plant operations and engineering jobs.
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“Energy security is national security, and electricity is the strategic commodity that is the building block for AI and our nation’s economic prosperity,” Don Moul, TVA President and CEO, added in the press release. “The world is looking for American leadership, and this first-of-a-kind agreement is the start of an innovative way of doing business. By developing a technology, a supply chain, and a delivery model that can build an industry to unleash American energy, we can attract and support companies like Google and help America win the AI race.”
The global market for SMRs is valued at $5.81 billion. The market is expected to reach $8.37 billion in just seven years, according to 2024 industry figures.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.