MW Google becomes the latest tech giant to strike a nuclear-power deal for AI

By Emily Bary

Amazon, Microsoft and Oracle all have nuclear arrangements of their own as tech companies seek clean-energy solutions for AI's massive power needs

Google is the latest big player in artificial intelligence that will turn to nuclear power as a means of meeting the heavy energy needs of data centers.

The company has reached an agreement with Kairos Power that will provide "a path to deploy a U.S. fleet of advanced nuclear-power projects" amounting to 500 megawatts by 2035.

Kairos Power plans to develop, construct and run multiple nuclear-reactor plants through purchase-power agreements. The company, which is headquartered in Alameda, Calif., expects its initial deployment in 2030 as it works to power Google data centers.

The companies deem this "the first corporate agreement for multiple deployments of a single advanced-reactor design in the United States," according to a statement from Kairos.

Alphabet's $(GOOG)$ $(GOOGL)$Google is the last of the big U.S. hyperscalers to ink nuclear-power agreements, with Amazon.com Inc. $(AMZN)$, Oracle Corp. $(ORCL)$ and Microsoft Corp. $(MSFT)$ setting the tone earlier this year.

"This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone," Michael Terrell, Google's senior director of energy and climate, said in a blog post.

While Kairos isn't publicly listed, nuclear-power plays have been strong stock performers this year. Vistra Corp.'s stock $(VST)$ is the best performer in the S&P 500 SPX on the year, with a 244% gain that beats out Nvidia Corp.'s $(NVDA)$ 179% advance. Constellation Energy Corp.'s stock $(CEG.UK)$ ranks fourth in the index with a 132% increase, while Talen Energy Corp. $(TLN)$ isn't in the S&P 500 but is ahead 155%.

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Artificial intelligence consumes much more power than traditional technology applications, and tech companies have been looking for clean-energy sources that can meet these high power demands. Solar and wind can be intermittent, which is why tech giants increasingly are turning to nuclear power.

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"Nuclear solutions offer a clean, 'round-the-clock power source that can help us reliably meet electricity demands with carbon-free energy every hour of every day," Terrell said.

-Emily Bary

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October 14, 2024 17:25 ET (21:25 GMT)

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