Google partners with Tennessee Valley Authority to supply nuclear power for AI data centers

In a strategic move to address the escalating energy demands of data centers, Google has entered into a partnership with Kairos Power and the Tennessee Valley Authority (TVA). The agreement, signed several months ago, marks a significant milestone as it will provide 50 megawatts of nuclear power to data centers located in Tennessee and Alabama. This collaboration is indicative of a growing trend among major tech companies to seek out alternative energy solutions to power their operations sustainably. The partnership involves Kairos Power's Hermes 2 Plant based in Oak Ridge, Tennessee, which will contribute up to 50 megawatts to the TVA grid that serves Google's facilities. This arrangement not only positions TVA as the first utility to purchase power from a Generation IV nuclear reactor but also initiates the rollout of Hermes 2 under a broader plan to supply Google with a total of 500 megawatts by 2035. By 2030, Kairos intends to increase the plant’s output from its current 28 megawatts to meet the demands of Google’s expansive operations. With a rising U.S. energy demand largely driven by cloud computing and artificial intelligence, Google's decision is part of a larger strategy to integrate clean and reliable energy sources into its operational framework. Previous agreements between Google and Kairos Power aimed to harness multiple small modular reactors situated strategically within service areas to deliver clean energy to data centers starting in 2030. The reactors, which are still in development, aim to address the sustainable energy needs of tech giants as they continue to grow. The implications of this deal extend beyond just Google's operations. As energy requirements soar in the U.S., companies are beginning to recognize the potential of advanced nuclear technology to meet these needs efficiently and sustainably. Industry reports suggest that U.S. electricity demand is projected to increase by 15.8% by 2029, highlighting the urgency to adopt cleaner energy alternatives. Google's collaboration with Kairos Power is not an isolated example; Microsoft and Amazon are also exploring nuclear energy solutions, indicating a broader industry shift towards cleaner energy practices.