financetom
Business
financetom
/
Business
/
Google to buy power for AI needs from small modular nuclear reactor company Kairos
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Google to buy power for AI needs from small modular nuclear reactor company Kairos
Oct 17, 2024 12:24 PM

WASHINGTON, Oct 14 (Reuters) -

Alphabet's Google said on Monday it signed the

world's first corporate agreement to buy power from multiple

small modular reactors to meet electricity demand for artificial

intelligence.

The technology company's agreement with Kairos Power aims to

bring Kairos' first small modular reactor online by 2030,

followed by additional deployments through 2035.

The companies did not reveal financial details of the

agreement or where in the U.S. the plants would be built. Google

said it has agreed to buy a total of 500 megawatts of power from

six to seven reactors, which is smaller than the output of

today's nuclear reactors.

"We feel like nuclear can play an important role in helping

to meet our demand ... cleanly in a way that's more around the

clock," Michael Terrell, senior director for energy and climate

at Google, told reporters on a call.

Technology firms have signed several recent agreements with

nuclear power companies this year as artificial intelligence

boosts power demand for the first time in decades.

In March, Amazon.com ( AMZN ) purchased a nuclear-powered

datacenter from Talen Energy ( TLN ). Last month, Microsoft ( MSFT )

and Constellation Energy ( CEG ) signed a power deal to

help resurrect a unit of the Three Mile Island plant in

Pennsylvania, the site of the worst U.S. nuclear accident in

1979.

U.S. data center power use is expected to roughly triple

between 2023 and 2030 and will require about 47 gigawatts of new

generation capacity, according to Goldman Sachs estimates, which

assumed natural gas, wind and solar power would fill the gap.

Kairos will need to get full construction and design

permitting from the U.S. Nuclear Regulatory Commission as well

as permits from local agencies, a process that can take years.

Kairos late last year got a construction permit from the NRC

to build a demonstration reactor in Tennessee.

"The NRC is ready to efficiently and appropriately review

applications for new reactors," said Scott Burnell, an NRC

spokesperson.

Small modular reactors are intended to be smaller than

today's reactors with components built in a factory, instead of

onsite, to reduce construction costs.

Critics say SMRs will be expensive because they may not be

able to achieve the economy of scale of larger plants. In

addition, they will likely produce long-lasting nuclear waste

for which the country does not yet have a final repository.

Google said by committing to a so-called order book

framework with Kairos, instead of buying one reactor at a time,

it is sending a demand signal to the market and making a

long-term investment to speed development of SMRs.

"We're confident that this novel approach is going to

improve the prospects of our projects being delivered on cost

and on schedule," said Mike Laufer, CEO and co-founder of

Kairos.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Air Lease Q1 profit misses estimates on higher interest expenses
Air Lease Q1 profit misses estimates on higher interest expenses
May 6, 2024
May 6 (Reuters) - Air Lease Corp ( AL ) reported a lower-than-expected quarterly profit on Monday as it made higher interest payments on funds borrowed to finance aircraft purchases. The California-based company's results have gained in recent quarters as supply of aircraft from the world's top two planemakers, Boeing ( BA ) and Airbus, have been constrained mainly due...
Realty Income Q1 Adjusted FFO, Revenue Rise; 2024 AFFO Guidance Reaffirmed
Realty Income Q1 Adjusted FFO, Revenue Rise; 2024 AFFO Guidance Reaffirmed
May 6, 2024
04:44 PM EDT, 05/06/2024 (MT Newswires) -- Realty Income ( O ) reported Q1 adjusted funds from operations late Monday of $1.03 per diluted share, up from $0.98 a year earlier. Analysts polled by Capital IQ expected AFFO of $1.02. Revenue for the quarter ended March 31 was $1.26 billion, compared with $944.4 million a year earlier. Analysts surveyed by...
BRIEF-DZS To Acquire Subscriber Access Technology Leader NetComm
BRIEF-DZS To Acquire Subscriber Access Technology Leader NetComm
May 6, 2024
May 6 (Reuters) - DZS Inc ( DZSI ): * DZS TO ACQUIRE SUBSCRIBER ACCESS TECHNOLOGY LEADER NETCOMM * DZS INC ( DZSI ) - UNDER TERMS OF ACQUISITION AGREEMENT, DZS WILL PAY $7 MILLION AT CLOSING FOR NETCOMM, INCLUDING ITS INTELLECTUAL PROPERTY AND INVENTORY Source text for Eikon: Further company coverage: ...
Simon Property Q1 FFO, Revenue Increase
Simon Property Q1 FFO, Revenue Increase
May 6, 2024
04:44 PM EDT, 05/06/2024 (MT Newswires) -- Simon Property ( SPG ) reported Q1 funds from operations late Monday of $3.56 per diluted share, up from $2.74 a year earlier. Analysts polled by Capital IQ expected $2.82. Revenue for the quarter ended March 31 was $1.44 billion, up from $1.35 billion a year earlier. Three analysts surveyed by Capital IQ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved