More power to data centres & AI

Google (GOOGL.O) and Kairos Power announced on Monday that they had chosen Tennessee as the location of a state-of-the-art nuclear power plant that will provide electricity to the Big Tech giants’ data centers in the southeast region of the United States beginning in 2030.

In collaboration with Kairos Power, Google has formally chosen Oak Ridge, Tennessee, as the location of its first small modular nuclear reactor (SMR). This cutting-edge reactor, named Hermes2, is scheduled to start up in 2030 and will provide Google’s data centers in Tennessee and Alabama with 50 megawatts of clean energy, which is enough to power about 350,000 households. This agreement with the Tennessee Valley Authority (TVA) is the first utility agreement for generation IV nuclear electricity in the United States.

The Significance of It will bring-

1. Fulfilling the Increasing Demand for AI Energy- Massive power consumption occurs in data centers       that operate AI applications. Google’s action demonstrates how big tech is using nuclear energy to provide consistent, carbon-free power.  
2. A Trailblazing Agreement – Nuclear technology from Generation IV delivers improved efficiency, sustainability, and safety. For the first time, a U.S. utility has consented to purchase from this type of reactor.
3. Nuclear Innovation De-Risking – While TVA supplies the purchase agreement, Google and Kairos assume the financial and development risk for Hermes 2, protecting customers from cost overruns.
4. Increasing American Leadership in Energy and AI – Under its Advanced Reactor Demonstration Program, the U.S. Department of Energy supports the project because it believes SMRs are essential to clean energy and AI-powered infrastructure.