Jingtong Finance APP learned that Google (GOOGL.US) stated on Monday that it will purchase electricity from a series of small nuclear reactors (SMRs) produced by nuclear energy startup Kairos Power. The tech giant stated that purchasing electricity from multiple SMRs sends an "important demand signal" to the market and also makes long-term investments to accelerate commercialization. Encouraged by this news, advanced nuclear technology companies Oklo (OKLO.US) and NuScale Power (SMR.US) closed significantly higher on Monday, up by 9.7% and 6.1% respectively.

Google stated that it has signed the world's first corporate agreement to purchase electricity from multiple small modular reactors to meet the energy needs of artificial intelligence. The company will purchase the electricity generated by 7 reactors built by Kairos Power, with the goal of adding 500 megawatts of nuclear power generation capacity by the end of this decade. Financial terms have not been disclosed.

Google's Energy and Climate Director, Michael Terrell, said in a conference call with reporters, "We believe that nuclear energy plays a crucial role in supporting our clean growth and helping advance artificial intelligence. The grid needs these clean, reliable energy sources to support the development of these technologies. ... We believe that nuclear power can play an important role in helping meet our needs, and can clean our needs in a more all-weather manner."

The company did not disclose the financial terms of the transaction.

Large technology companies are arranging power supply for the large data centers needed to run artificial intelligence systems, prompting electrical utilities to build more natural gas power plants while sparking interest in nuclear power plants that can provide clean energy around the clock. Currently, more and more tech companies are turning to nuclear power as a way to meet the growing energy demands of data centers.

Only three small reactors are operational worldwide, none of which are in the United States. People are hoping that small reactors will be a more cost-effective way to expand nuclear power generation. Past large-scale commercial nuclear reactor projects have often gone over budget and fallen behind schedule, and many are hopeful that small reactors will not repeat these mistakes. However, to some extent, this is an unknown field.

Kairos Power was established in 2016 with support from the U.S. Department of Energy. In July, the company began constructing the Hermes low-power demonstration reactor at the Oak Ridge site in Tennessee. Unlike traditional nuclear reactors, Kairos Power uses molten fluoride salt as the reactor coolant.

Google stated that the first reactor will be operational by 2030, with more reactors scheduled for operation by 2035. A total of 500 megawatts of power will be added to the grid. These reactors are much smaller than commercial reactors, such as the 1.1 gigawatt Unit 4 of the Vogtle nuclear power plant commissioned this year, but small modular nuclear reactors have significant potential. Supporters point out that they are more cost-effective, quicker to complete, and offer more flexibility in location.

Monday's statement is another example of the increasingly close collaboration between technology companies and nuclear power. Data centers require reliable, emissions-free baseload power around the clock, and nuclear energy is currently the only zero-emission source of baseload power. Many large-scale enterprises have ambitious emission reduction goals, which has driven them to turn to nuclear energy.

Constellation Energy (CEG.US) is restarting Three Mile Island to power Microsoft's data centers, while Amazon has purchased a data center powered by the Susquehanna nuclear power station from Talen Energy (TLN.US). Bill Gates, Sam Altman, and Jeff Bezos have all supported nuclear energy companies.

Earlier this year, Google stated that its emissions had increased by nearly 50% compared to 2019, partly due to the increasing energy consumption of its data centers.

Terrell said, "This is a very promising bet. If we can scale up these projects and expand them globally, it will bring immense benefits to communities and power grids around the world."

It is understood that Kairos Power needs comprehensive construction and design permits from the U.S. Nuclear Regulatory Commission and local institutions, a process that may take several years; the company has already obtained a construction permit from the U.S. Nuclear Regulatory Commission to build a demonstration reactor in Tennessee.