Amazon Joins Google and Microsoft in the Nuclear Energy Race to Power AI and Data Centers
As artificial intelligence (AI) technology continues to evolve, the energy demands of data centers are surging. To address these growing needs sustainably, Google has announced a pioneering partnership with Kairos Power, a US-based nuclear energy company, to power its AI data centers with small modular reactors (SMRs). This groundbreaking move marks a significant step in Google’s effort to run entirely on carbon-free energy by 2030.
What are small modular reactors (SMRs) and why Google chose them
Small modular reactors represent a leap forward in nuclear technology. Unlike traditional reactors, SMRs are smaller, more adaptable, and quicker to construct. These reactors employ a molten-salt cooling system, which enhances safety and efficiency compared to water-cooled systems.
One of the main benefits of SMRs is their scalability. They can be mass-produced and deployed in diverse locations, offering localized energy solutions. For Google, this translates into a stable, 24/7 power supply that is critical for the uninterrupted operation of its AI data centers. SMRs also offer an advantage over renewable sources like wind and solar, which are dependent on weather conditions. Kairos Power’s first SMR is expected to be operational by 2030, with additional reactors planned through 2035.
The role of SMRs in supporting AI and data center growth
Data centers are the core infrastructure of the digital economy, and AI-driven services are pushing their energy consumption to new heights. By 2028, global data centers are projected to consume nearly 857 terawatt-hours (TWh) annually, almost double the amount used in 2023.
To keep up with this demand, Google’s AI models, like the advanced Gemini system, require a constant energy supply. Integrating SMRs ensures that these models can run without interruptions, while also keeping Google’s commitment to carbon-free energy. This move will help the company meet both its sustainability goals and the energy needs of its growing AI capabilities.
Google’s partnership with Kairos Power represents a critical step toward the commercialization of SMRs. As the first corporate entity to sign a deal for multiple reactors, Google is not just a customer but also a key player in advancing nuclear technology. This agreement will accelerate the development of SMRs, providing a reliable path to decarbonize power grids.
Amazon joins the nuclear energy race
Amazon has followed in the footsteps of tech giants Google and Microsoft by investing in X-energy, a US company specializing in small modular reactors (SMRs). The tech giant aims to power its data centers with nuclear energy, further supporting its commitment to reducing carbon emissions.
Amazon’s involvement in X-energy is significant, as the company leads a $500 million funding round alongside other investors. By securing a stake in the company and taking two seats on its board, Amazon is positioning itself as a key player in the clean energy shift. With the goal of generating over 5 gigawatts (GW) of nuclear power by 2039, this partnership could significantly contribute to reducing the carbon footprint of Amazon’s growing AI and cloud computing operations.
The rising energy consumption from AI models and data centers is driving the push for innovative solutions. Traditional renewable sources, such as wind and solar, while essential, often struggle with consistency due to their dependence on weather conditions. Nuclear energy, particularly through SMRs, offers a stable, scalable solution to power data centers without increasing carbon emissions.
With the International Energy Agency (IEA) forecasting data center electricity consumption to exceed 1,000 terawatt-hours (TWh) by 2026, the urgency for reliable, clean power is evident. Tech companies are stepping up investments in advanced nuclear technologies to fill this gap, with Google, Microsoft, and Amazon leading the charge.
Despite the promise of SMRs, there are still obstacles to overcome. The technology remains in the development phase, and regulatory approval from the US Nuclear Regulatory Commission is required before reactors can be deployed. Additionally, the high initial costs and public skepticism surrounding nuclear energy continue to pose challenges.
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