Google has made headlines with its recent announcement about a groundbreaking deal to support the construction of seven small modular nuclear reactors in the United States, marking a significant step to meet the rising energy demands of its AI operations.

In a joint statement on October 14, Google and nuclear startup Kairos Power revealed that Google has committed to purchase the electricity generated by these reactors, with the aim to add 500 MW of nuclear power by the end of this decade. This move is expected to help Kairos Power bring its first commercial reactor online by 2030, along with plans to add more reactors by 2035.

This agreement paves the way for the commercialization of small modular reactors (SMRs) in the U.S. Many industry experts believe that SMR technology represents the future of nuclear power in the country. By opting for multiple smaller reactors instead of traditional large plants, the industry can expedite construction and reduce costs.

Tyrell, Google’s senior director of energy and climate, emphasized the critical role of nuclear power in achieving the company’s clean energy goals. “We believe it is essential to have technologies that can provide reliable power to complement wind, solar, and lithium-ion storage,” he stated.

When asked whether these reactors would supply power directly to the grid or connect to data centers, Tyrell noted that Google is considering various options.

Both Google and Kairos Power have declined to disclose the financial details of their agreement, including whether Google will provide funding for the construction of the SMRs or simply purchase electricity after the reactors are operational.

The fate of the nuclear industry is increasingly intertwined with that of major technology companies. Last month, Microsoft announced its commitment to purchase electricity for 20 years from the Three Mile Island nuclear power plant if Constellation Energy can restart it. Earlier this year, Amazon also acquired a data center located near a nuclear facility in Pennsylvania. This trend highlights the growing interest of tech companies in nuclear energy as a low-carbon solution to meet the energy needs of their data centers.

Google’s deal with Kairos marks the first instance of a major tech firm committing to the construction of nuclear power plants. Over the past 20 years, only three new reactors have come online in the U.S. While nearly 20% of the country’s electricity comes from nuclear power, high costs and lengthy construction times have stalled new large-scale projects.

Kairos Power, headquartered in Alameda, California, has developed a reactor design that uses molten fluoride salt for cooling, rather than traditional water systems. The company received a construction permit from the Nuclear Regulatory Commission last December for a 50 MW demonstration reactor in Tennessee, which is expected to begin operations by 2027.