Google signs first US nuclear deal for data centers

Google announced on August 18, 2025, a landmark collaboration with Kairos Power and Tennessee Valley Authority (TVA) to deploy the first Generation IV advanced nuclear reactor connected to the US electricity grid. The partnership establishes a power purchase agreement enabling TVA to buy electricity from Kairos Power's Hermes 2 Plant in Oak Ridge, Tennessee, marking the first commercial deployment under Google's broader 500-megawatt nuclear capacity initiative.

The collaboration addresses mounting energy challenges facing major technology companies as artificial intelligence and data center operations drive unprecedented electricity demand. According to the Environmental and Energy Study Institute, data centers currently account for 2% of US emissions at 105 million metric tons of carbon annually, with major tech companies investing hundreds of billions in AI infrastructure creating additional strain on electricity grids.

TVA becomes the first US utility to sign a power purchase agreement for electricity from an advanced Generation IV reactor. The agreement will deliver up to 50 megawatts of continuous nuclear energy to TVA's grid, which powers Google data centers in Montgomery County, Tennessee, and Jackson County, Alabama. This represents a significant increase from the originally planned 28-megawatt output through a single reactor configuration.

"To power the future, we need to grow the availability of smart, firm energy sources," said Amanda Peterson Corio, Google's Global Head of Data Center Energy. "This collaboration with TVA, Kairos Power, and the Oak Ridge community will accelerate the deployment of innovative nuclear technologies and help support the needs of our growing digital economy while also bringing firm carbon-free energy to the electricity system."

The Hermes 2 plant utilizes Kairos Power's fluoride salt-cooled, high-temperature reactor technology, representing a departure from traditional water-cooled nuclear designs. Construction of the demonstration reactor began in 2025, marking the first non-water-cooled reactor approved for construction in the United States in over 50 years. Operations are scheduled to commence in 2030.

Kairos Power CEO and co-founder Mike Laufer emphasized the commercial significance of the arrangement. "This collaboration is an important enabler to making advanced nuclear energy commercially competitive," said Laufer. "The re-envisioned Hermes 2 gets us closer to the commercial fleet sooner and could only be made possible by close collaboration with TVA and Google, and a supportive local community."

The financial structure protects electricity customers by limiting development costs to first movers while establishing pathways for cost reduction as additional units come online. Google will receive clean energy attributes from the plant through the TVA system, enabling the company to decarbonize data center operations with locally sourced clean energy available 24 hours daily.

Don Moul, TVA President and CEO, positioned the agreement within broader national security and economic competitiveness frameworks. "Energy security is national security, and electricity is the strategic commodity that is the building block for AI and our nation's economic prosperity," said Moul. "The world is looking for American leadership, and this first-of-a-kind agreement is the start of an innovative way of doing business."

The collaboration builds upon Google's October 2024 announcement of a long-term partnership with Kairos Power to unlock up to 500 megawatts of nuclear capacity through multiple small modular reactor deployments. The broader initiative aims to bring advanced nuclear capacity online by 2035 to support Google's growing energy requirements driven by artificial intelligence and cloud computing services.

Oak Ridge holds particular significance as the site of major technological breakthroughs and advancements in nuclear history. The Hermes 2 project aims to re-establish Oak Ridge as a nuclear innovation hub through new workforce development programs created in partnership with the University of Tennessee and other local universities.

"Oak Ridge was really established as a hub for nuclear innovation," said Tracy Berner, president and CEO of the East Tennessee Economic Council. "We not only welcome companies who are in the nuclear industry, we embrace them. Having a company like Kairos Power here, it will bring 30 to 50% higher paying jobs than are normally here in East Tennessee."

The project includes development of specialized training facilities, with Kairos Power building a simulator facility that the University of Tennessee will host. Hope Palmer, learning and development specialist at Kairos Power, explained the training approach: "We'll be able to take our operators there and train them on a simulator of the Hermes plant."

Tennessee political leaders expressed strong support for the nuclear initiative. Energy Secretary Chris Wright highlighted the national strategic importance: "The deployment of advanced nuclear reactors is essential to U.S. AI dominance and energy leadership. The Department of Energy has assisted Kairos Power with overcoming technical, operational, and regulatory challenges as a participant in the Advanced Reactor Demonstration Program."

Senator Bill Hagerty emphasized the competitive advantages: "Advancing nuclear technology is essential to unleashing American energy and driving a nuclear renaissance that secures our competitive edge in the global market. This agreement is a critical step toward this goal."

The timing coincides with increasing industry focus on sustainability and emissions tracking as technology companies face pressure to reduce environmental impact while scaling operations. Google's approach creates a three-party solution where energy customers, utilities, and technology developers collaborate to advance clean energy technologies capable of meeting growing demand.

TVA operates as the nation's largest public power supplier, delivering energy to more than 10 million people across seven southeastern states. The authority maintains one of the most diverse energy systems, including nuclear, hydro, solar, gas, and advanced technologies. TVA residential rates rank lower than those paid by over 80% of customers of the top 100 US utilities.

Kairos Power, founded in 2016, applies rapid iterative development and vertical integration strategies to commercialize advanced reactor technology. The company's fluoride salt-cooled, high-temperature reactor design aims to provide clean energy deployment with robust safety at affordable costs to enable deep decarbonization.

The collaboration demonstrates how public-private partnerships can accelerate deployment of next-generation energy technologies while addressing the dual challenges of meeting growing electricity demand and achieving carbon reduction goals. The model could provide a framework for similar arrangements as other technology companies seek reliable, carbon-free energy sources for expanding digital infrastructure.

Jake McMurray, principal engineer for salt chemistry at Kairos Power, highlighted the historical significance: "For Google to come and support Kairos's effort, it's a shot in the arm to the local economy and then to be able to put carbon free electrons on the grid in the very place that did so much to advance reactor technology."

The partnership positions the United States to maintain leadership in both advanced nuclear technology and artificial intelligence infrastructure as global competition intensifies in both sectors. The successful deployment could accelerate adoption of similar technologies across the electricity sector, supporting broader decarbonization efforts while ensuring reliable power supply for digital economy growth.

According to TVA's Moul, the collaboration provides a pathway for attracting additional technology companies while supporting American competitiveness: "By developing a technology, a supply chain, and a delivery model that can build an industry to unleash American energy, we can attract and support companies like Google and help America win the AI race."

Timeline

• 2016: Kairos Power founded to commercialize fluoride salt-cooled reactor technology
• 2024: Google announces long-term collaboration with Kairos Power for 500 MW nuclear capacity
• 2025: Kairos Power commences safety-related construction of Hermes demonstration reactor
• August 18, 2025: Google, Kairos Power, and TVA announce power purchase agreement
• 2030: Hermes 2 plant scheduled to begin operations • 2035: Target date for Google's full 500 MW advanced nuclear capacity deployment

PPC Land explains

Nuclear Energy: Advanced nuclear technology represents the next generation of clean electricity production, utilizing improved reactor designs that offer enhanced safety features and operational efficiency. The Hermes 2 plant employs Generation IV reactor technology, specifically fluoride salt-cooled, high-temperature reactors that operate differently from traditional water-cooled nuclear facilities. This technology provides continuous, carbon-free electricity generation capable of meeting baseload power requirements 24 hours daily, making it particularly valuable for data centers requiring consistent energy supply.

Data Centers: Large-scale computing facilities that house servers, storage systems, and networking equipment essential for cloud computing, artificial intelligence processing, and digital services. These facilities consume substantial amounts of electricity for both computing operations and cooling systems, with current data centers accounting for 2% of US emissions. Google operates data centers in Montgomery County, Tennessee, and Jackson County, Alabama, which will receive clean energy from the Hermes 2 plant through TVA's electrical grid.

Tennessee Valley Authority (TVA): The nation's largest public power supplier, serving more than 10 million people across seven southeastern states through a diverse energy portfolio including nuclear, hydro, solar, gas, and advanced technologies. TVA operates as a self-supporting corporate agency receiving no annual federal appropriations, maintaining some of the lowest energy costs and highest reliability in the nation. The authority's residential rates rank lower than 80% of the top 100 US utilities.

Kairos Power: A nuclear technology, engineering, and manufacturing company founded in 2016, focused exclusively on commercializing fluoride salt-cooled, high-temperature reactor technology. The company applies rapid iterative development and vertical integration strategies to bring advanced reactor technology to market, with the Hermes demonstration reactor representing the first non-water-cooled reactor approved for construction in the United States in over 50 years.

Generation IV Reactor: Advanced nuclear reactor designs that incorporate improved safety systems, enhanced fuel efficiency, and simplified operations compared to previous reactor generations. The Hermes 2 plant utilizes this technology to provide clean energy deployment with robust safety features at affordable costs, representing a significant advancement in nuclear technology capabilities and commercial viability.

Oak Ridge: A Tennessee city with distinguished nuclear history, serving as the site of major technological breakthroughs and advancements in nuclear research and development. The location provides an established nuclear innovation ecosystem, making it an ideal setting for deploying next-generation reactor technology while building upon decades of nuclear expertise and infrastructure development.

Power Purchase Agreement (PPA): A contractual arrangement between electricity generators and purchasers that establishes terms for buying and selling electrical power over specified periods. The agreement between Kairos Power and TVA represents the first US utility contract to purchase electricity from an advanced Generation IV reactor, creating a precedent for future advanced nuclear energy commercialization.

Clean Energy: Electricity generation methods that produce minimal or zero carbon emissions during operation, essential for addressing climate change and reducing environmental impact from energy production. The Hermes 2 plant will provide carbon-free electricity attributes to Google through the TVA system, supporting the company's sustainability goals while meeting growing energy demands from artificial intelligence and data center operations.

Artificial Intelligence (AI): Advanced computing technologies requiring substantial electrical power for processing, training machine learning models, and operating intelligent systems at scale. The growing deployment of AI applications across industries drives increasing energy demand, with technology companies seeking reliable, carbon-free electricity sources to support expanding digital infrastructure while meeting sustainability commitments.

Advanced Nuclear: Next-generation nuclear technologies that incorporate improved safety features, operational efficiency, and deployment capabilities compared to traditional nuclear power plants. These systems offer enhanced proliferation resistance, reduced waste production, and simplified maintenance requirements, positioning advanced nuclear as a key technology for meeting growing clean energy demands in the digital economy.

Summary

Who: Google, Kairos Power, and Tennessee Valley Authority (TVA), with key figures including Amanda Peterson Corio (Google's Global Head of Data Center Energy), Mike Laufer (Kairos Power CEO), and Don Moul (TVA President and CEO)

What: The first commercial power purchase agreement between a US utility and an advanced Generation IV nuclear reactor, enabling 50 megawatts of nuclear energy to power Google data centers through TVA's grid

When: Announced August 18, 2025, with the Hermes 2 plant scheduled to begin operations in 2030

Where: Oak Ridge, Tennessee, home to the Hermes 2 demonstration plant, which will supply electricity to Google data centers in Montgomery County, Tennessee, and Jackson County, Alabama

Why: To address growing energy demands from AI and data center operations while providing reliable, 24/7 carbon-free electricity and establishing American leadership in advanced nuclear technology and artificial intelligence infrastructure