Google has taken a significant step towards its nuclear energy goals by entering into a partnership with the Tennessee Valley Authority (TVA) to purchase electricity generated by a next-generation reactor. This agreement marks the first instance of a U.S. utility making a power purchase agreement for such advanced technology, according to both companies.
Under the agreement, TVA plans to procure electricity from a reactor being developed by engineering firm Kairos Power in Oak Ridge, Tennessee. The reactor is anticipated to be operational by 2030, supplying power to the regional grid that services Google’s data centers in Tennessee and Alabama.
Successful implementation of this project could herald a new era for nuclear energy in the United States.
Should the initiative succeed, it could catalyze a revival of nuclear energy in the U.S. The existing nuclear fleet relies on outdated technologies that have struggled against the low costs of natural gas and renewable energy sources such as solar and wind. Kairos Power aims to construct one of the initial reactors that advocates believe could reinvigorate the nuclear sector, addressing the growing electricity demands from major tech companies and artificial intelligence.
This announcement comes on the heels of Google’s commitment to procure electricity from additional small modular reactors designed by Kairos Power. The first under this plan is the Hermes 2 demonstration plant, which builds on the original Hermes reactor that began construction in July after receiving a historic construction permit—the first for a non-water-cooled reactor in over fifty years—from the Nuclear Regulatory Commission.
Distinct from traditional reactors utilizing water, Kairos Power’s design employs molten fluoride salt as a coolant. This innovative coolant has a significantly higher boiling point than water and can operate without reaching a boil, allowing the reactor to function at lower pressures. This low-pressure operation is expected to reduce costs associated with nuclear power by eliminating the need for large, high-pressure containment structures.
The city of Oak Ridge, once the center of the Manhattan Project, has transitioned from uranium enrichment for atomic weaponry to becoming a key site for nuclear energy innovation and research.
Google’s long-term ambition involves collaborating with Kairos Power to add 500 megawatts of nuclear capacity in the U.S. by 2035. For context, the 94 operating nuclear reactors in the U.S. had a total capacity of approximately 97,000 megawatts in 2024, contributing nearly 20 percent of the nation’s electricity supply. Hermes 2 is projected to achieve a capacity of 50 megawatts.
Companies producing zero-carbon electricity, including nuclear and renewables, can profit from selling their output to the power grid along with trading separate certificates that signify the environmental benefits of avoiding fossil fuel emissions. Google is expected to obtain these clean energy attributes from the Hermes 2 plant through TVA.
Technology firms often acquire clean energy attributes to offset the carbon footprint associated with their energy consumption. By aligning their electricity use with these certificates, companies can claim that they consume clean energy even when connected to a grid that relies on non-renewable sources. The financial gains from selling clean energy attributes are intended to stimulate the addition of more zero-carbon power to the grid, although studies indicate that the actual environmental benefits may sometimes be exaggerated. Google’s carbon emissions reportedly increased last year, correlating with its expanded AI initiatives.
