Google Joins Big Tech's Pivot To Nuclear Energy To Power AI

KEY TAKEAWAYS

• Alphabet's Google is backing the construction of seven reactors by Kairos Power, the latest move by a tech giant to ramp up nuclear energy to power AI.
• The target, Google said, is to add 500 megawatts of nuclear power in total. The first nuclear reactor is slated to be online by 2030, followed by others through 2035.
• Last month, Microsoft announced that Constellation Energy would be restarting Pennsylvania's Three Mile Island Unit 1 nuclear plant to provide electricity for the tech firm's data centers.

Alphabet's (GOOGL) Google is backing the construction of seven small reactors by Kairos Power, the latest move by a tech giant to ramp up nuclear energy use to power its artificial intelligence (AI) ambitions.

The target, Google said, is to add 500 megawatts of nuclear power in total. The first nuclear reactor is slated to be online by 2030, followed by others through 2035.

"This agreement is part of our efforts to develop and commercialize a broad portfolio of advanced clean electricity technologies to power our global data centers and offices," said Michael Terrell, senior director of energy and climate at Google, noting that the deal would provide "new 24/7 carbon-free power to U.S. electricity grids."

Microsoft, Amazon Also Have Struck Deals for Nuclear Power

The power-hungry nature of AI chips is prompting the large tech firms that are staking their fortunes on the technology to turn to nuclear energy, which has the advantage of being more stable than many other renewable energy sources.

Last month, Microsoft (MSFT) announced that Constellation Energy (CEG) would be restarting Pennsylvania's Three Mile Island Unit 1 nuclear plant to provide electricity for the tech firm's data centers in a 20-year supply deal.

In March, Amazon's (AMZN) Amazon Web Services bought a nuclear-powered data center in Pennsylvania for $650 million from Talen Energy (TLN).

Google shares are edging higher in premarket trading.

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