On October 14th, Google has signed an agreement with nuclear energy startup Kairos Power, which will build seven small modular nuclear reactors to power Google's datacenter.

The agreement promises that amidst the increasing energy demands of datacenters and artificial intelligence, Google plans to purchase power from Kairos for six to seven small modular reactors (SMRs), with Kairos providing about 500 megawatts of zero-carbon power to Google.

According to the agreement, the first small modular reactor will be operational before 2030, with further deployments expected before 2035. The two companies have not disclosed the financial details of the agreement or the location of the plants, and it is currently unclear whether these reactors will be directly connected to Google sites or integrated into the power grid.

Google's Energy and Climate Director, Michael Terrell, stated that through the agreement with Kairos, Google will obtain zero-carbon power. The agreement is a milestone in Google's 15-year journey to clean energy.

Terrell added, "We believe that nuclear energy plays a crucial role in supporting our clean growth and helping to advance artificial intelligence."

Through this deal, Google joins the ranks of Microsoft and Amazon, with these major tech companies all seeking to use nuclear energy to meet their high demand for electrical utilities.

In September of this year, Microsoft announced an agreement with Constellation Energy to restart the Three Mile Island reactor that closed in 2019 and purchase energy for the next 20 years; earlier this year, Amazon also stated plans to build a large-scale datacenter and directly connect it to another nuclear power plant in Pennsylvania.

Challenges lie ahead.

Currently, most nuclear power plants are large facilities capable of providing 1000 megawatts or more of electricity, but they require years of planning and nearly a decade of construction.

Kairos is one of the new nuclear energy startups, and they are constructing so-called small modular reactors, attempting to reduce costs and accelerate the construction speed of nuclear power plants.

These reactors, due to their simplified design and strong inherent safety, provide a new pathway to speed up nuclear deployment. The smaller size and modular design can also shorten construction time, enable deployment in more locations, and make the final project delivery more predictable.

According to data from the US Department of Energy (DOE), nuclear power has the largest economic impact among all sources of electricity generation, creating high-paying long-term job opportunities. The institution estimates that by 2050, the US's advanced nuclear power capacity will reach 200 gigawatt-hours and will require an additional 0.375 million workers.

Kairos is also attempting to advance the SMR technology further by using fluoride salts of lithium and beryllium to cool the reactor instead of water. The Nuclear Regulatory Commission has already approved this startup company's plan to build a 35-megawatt demonstration reactor.

Despite obtaining regulatory approval, Kairos still faces multiple challenges. Firstly, there are no commercially operational small modular reactors yet, which means their economic viability has largely not been proven. Secondly, Kairos' molten salt cooling design disrupts decades of industry experience with water-cooled reactors.

However, Kairos' biggest challenge may not be technical but rather public acceptance. Data from the Pew Research Center shows that 56% of Americans support nuclear energy, while 44% remain opposed. Most importantly, once the site locations for small reactors (closer to city centers) are considered, the opposition may increase further.

Compared to nuclear energy, more people support wind energy and solar energy, both of which are currently available and have costs far lower than building new nuclear power plants.