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Big Tech Explores Nuclear Power for AI – Google Signs Deal With Atomic Energy Startup

Last Updated
Kurt Robson
Last Updated
By Kurt Robson
Edited by Samantha Dunn

Key Takeaways

  • Google announced it will build seven small nuclear reactors across the U.S. with Kairos Power, an atomic energy startup.
  • Leading tech companies are exploring nuclear energy to power the rapid development of AI.
  • Nuclear energy is emerging as an attractive solution for Big Tech to reach ambitious climate change goals.
  • However, a CSIRO report found that nuclear power is more expensive than electricity generated with renewables.

Google has announced it will invest in developing seven small nuclear reactors across the U.S. as the search engine giant seeks new ways to meet the soaring energy demands of AI development.

As the rapid growth of AI continues to drive major energy consumption, mainly by electricity needed to power data centers, leading tech companies are against the clock to find new sustainable ways to up the power.

Google Partners With Atomic Energy Startup

Google announced  on Monday it had signed a deal with Kairos Power, an atomic energy startup, to build and purchase nuclear energy from multiple small reactors (SMRs).

The first of the seven SMRs will be online by 2030, followed by additional deployments up until 2035.

Google intends to drive up to 500 MW of new 24/7 carbon-free power to U.S. electricity grids to “help more communities benefit from clean and affordable nuclear power.”

The move follows Google CEO Sundar Pichai stating the search engine giant wanted to utilize nuclear energy to power its expanding network of AI data centers.

Big Tech Explores Nuclear for AI

Big Tech companies such as Amazon, Google, and Microsoft are all exploring the possibility of nuclear energy as a source for their AI development.

The climate goals of Google and other Big Tech companies are extremely ambitious. Google is hoping to achieve net-zero emissions across its operations by 2030.

This is mirrored by Microsoft which has pledged  to be carbon negative by 2030. Amazon has also pledged  to reach carbon neutral by 2040, with a promise of using 100% renewable energy by 2025.

However, some critics believe Big Tech’s climate goals are unachievable. In 2023, Google’s total greenhouse gas emissions were 48% more than in 2019, fuelled by their investments in power-hungry GenAI.

Former Google CEO Eric Schmidt recently called for an end to lofty climate goals, claiming AI would outpace any measures Big Tech puts in place.

The Economics of Nuclear

Nuclear energy is emerging as an attractive solution for Big Tech because it offers a low-carbon, high-output power source capable of meeting the needs of AI infrastructure on a large scale.

Unlike fossil fuels, which are responsible for a substantial share of global greenhouse gas emissions, nuclear power generates electricity without releasing carbon dioxide during operation.

A May 2024 report  from Australia’s CSIRO reported that nuclear power from large-scale reactors and small modular reactors are extensively more expensive than electricity generated with renewables.

Large-scale nuclear is estimated between $141 and $233/MWH, while small modular reactors are estimated between $230 and $382/MWH, according to the report.

However, electricity from solar and wind would cost just $73 and $128 per megawatt hour.

How Safe is Nuclear?

The International Atomic Energy Agency, an intergovernmental organization that focuses on the use of energy, claims nuclear plants  are among “the safest and most secure facilities in the world”.

Nuclear plants are subject to rigorous safety testing and are forced to meet international safety standards. Despite this, there have been high-profile accidents which led to the release of large amounts of radioactive material into the environment.

In 1986, the Chernobyl nuclear power plant in Ukraine suffered the worst nuclear accident in history, resulting in a massive release of radiation across Europe.

More recently, in 2011, a tsunami flooded the Fukushima nuclear plant and caused a meltdown of three reactor cores. Although fatalities from the radiation exposure were minimal, the accident caused widespread environmental damage.

The fear of disasters makes nuclear energy a contentious issue – however, it is worth noting that Chernobyl and Fukushima were caused by either flawed designs or natural disasters. Newer nuclear technologies aim to mitigate these risks with improved safety features.

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