Google has teamed up with Kairos Power and the Tennessee Valley Authority to build Tennessee’s first advanced nuclear plant, designed to power AI data centers. The project will be located in Oak Ridge and will use a next-generation small modular reactor expected to begin supplying electricity by 2030.
The agreement, signed in 2024, covers up to 500 megawatts of advanced nuclear capacity, enough to power about 350,000 homes using Kairos technology. This marks the first U.S. utility agreement for a Generation 4 nuclear plant, a class of reactors developed for greater safety and sustainability.
As electricity demands from artificial intelligence continue to surge, Google says the collaboration will accelerate nuclear deployment. While supporting its carbon-free energy goals. The Department of Energy is backing the project, calling advanced
nuclear deployment. And it is essential for both AI leadership and U.S. energy security. If successful, the plant could pave the way for wider adoption of small modular reactors across the country. The Google-Kairos agreement is part of a broader wave of partnerships between technology companies and nuclear providers. Microsoft has signed with Constellation to restart Three Mile Island. Amazon has a power purchase agreement with Talon Energy for Susquehanna and has invested 500 million dollars in X-energy. Meta has signed with Clinton and Constellation, while Nvidia has invested 650 million dollars in Terra Power. However, Google’s project is the first direct power purchase agreement between a tech company and a Generation 4 nuclear reactor through TVA.
One of the most notable changes in the project involves Kairos’s Hermes 2 plant. This design works on a single molten salt reactor producing 50 megawatts instead of two smaller reactors generating 28 megawatts. The reactor is graphite-moderated, randomly packed with pebble bed fuel, and cooled by molten fluoride salt. It operates at high temperatures but near atmospheric pressure. Kairos has said that the change will not require major licensing amendments since the construction permit is already in place. Although some experts are skeptical due to nearly 50 percent increased power output.
The model also reflects a shift in how tech companies are approaching nuclear power. At the 2024 ANS conference, Google and Microsoft said they would not directly invest in new nuclear projects but would instead sign long-term power agreements. “We are not going to own a nuclear project,” said Microsoft’s Adrian Anderson at the time. This strategy allows utilities and developers to handle construction risks,
while tech firms secure the clean energy they need. Google’s need is significant. The company reported a 27 percent year-on-year increase in electricity use, driven by AI, Google Cloud, YouTube, and other operations. Its power demand is projected to rise from 24 terawatt hours in 2023 to more than 42 terawatt hours by 2030, an increase of 75 percent.
TVA confirmed it will buy electricity from Hermes 2 at market-based prices fixed by time of day. However, details such as the contract’s length, full pricing structure, and risk allocation have not been disclosed.
Overall, the deal highlights the growing role of advanced nuclear power in meeting the energy needs of the digital economy. If the Oak Ridge project proves successful, it may encourage further partnerships between technology companies and nuclear developers in the years ahead.
