Google has initiated a collaboration with the Tennessee Valley Authority (TVA) to purchase electricity from a next-generation nuclear reactor, marking the first power purchase agreement of its kind in the United States. This agreement involves TVA acquiring electricity from a reactor currently under development by Kairos Power in Oak Ridge, Tennessee. The reactor is expected to begin operations by 2030 and will supply electricity to Google’s data centers located in Tennessee and Alabama.
As the current U.S. nuclear fleet relies on aging technology, Kairos Power aims to establish a new generation of reactors that may revitalize the nuclear energy sector and address the increasing electricity needs of the technology industry. The site in Oak Ridge, historically associated with the Manhattan Project, is now transforming into a center for nuclear energy advancements.
Google’s long-term objective is to support Kairos in deploying 500 megawatts of additional nuclear capacity in the United States by 2035. For context, the existing 94 operational nuclear reactors in the U.S. had a collective capacity of roughly 97,000 megawatts in 2024, accounting for nearly 20 percent of the nation’s electricity generation. The Hermes 2 reactor, in particular, is projected to have a capacity of 50 megawatts.
Firms producing carbon-free electricity, including nuclear and renewable sources, are able to profit from both selling electricity to the grid and from clean energy attributes—certificates representing the environmental advantages of avoiding fossil fuel emissions. Google intends to obtain clean energy attributes from the Hermes 2 project through TVA.
Many tech companies pursue clean energy attributes to offset their carbon emissions associated with electricity use. This approach allows them to claim they are using clean energy despite being connected to a power grid that may still include fossil fuels. However, studies indicate that the environmental benefits of this practice are often overstated. As Google continues to expand its AI initiatives, concerns persist regarding its carbon emissions, which reportedly increased in the previous year.
Source: https://www.theverge.com/news/761809/nuclear-energy-google-ai-advanced-reactor-kairos-tva-electricity-utility