Google Signs Landmark Nuclear Power Deal to Fuel AI’s Growing Energy Demands

Tech giant Google (Nasdaq: GOOG) has inked a groundbreaking deal to purchase power from small modular nuclear reactors (SMRs). This agreement, announced on Monday, marks a significant shift in how tech companies are approaching their energy needs in the face of AI’s voracious power consumption.

Google’s partnership with Kairos Power aims to bring up to 500 megawatts (MW) of carbon-free nuclear power online by 2030, with additional deployments planned through 2035. This deal is not just a first for Google, but a world first for corporate procurement of SMR-generated electricity.

The move comes as the tech industry grapples with the enormous energy requirements of AI technologies. Industry experts note that a single query to an AI system like ChatGPT can consume nearly ten times the electricity of a standard Google search. Modern data centers, now equipped with powerful graphics processing units (GPUs) to handle AI workloads, can demand upwards of 100MW of power each—a tenfold increase from a decade ago.

The Uptime Institute, a global digital infrastructure authority, projects that AI could account for 10% of global data center power use by next year, up from just 2% currently. This rapid growth is driving tech companies to seek out new, reliable sources of clean energy.

Google isn’t alone in its nuclear ambitions. Competitors Amazon (Nasdaq: AMZN) and Microsoft (Nasdaq: MSFT) have also recently struck deals with conventional nuclear power plants in the United States. These moves reflect a broader industry trend towards nuclear power as a solution to meet the twin challenges of energy demand and carbon reduction.

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However, the tech industry’s pivot to nuclear power is not without controversy. While proponents argue that nuclear energy offers a clean, reliable alternative to fossil fuels, critics point to longstanding safety concerns and the unresolved issue of nuclear waste management.

The scale of AI’s energy appetite is staggering. Reports suggest that some companies are considering data center projects that would require gigawatts of power—equivalent to the electricity needs of entire cities. This massive demand is reshaping energy infrastructure planning and investment on a global scale.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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