TLDR
- Google partners with Kairos Power to deploy 50-megawatt nuclear reactor by 2030
- Tennessee Valley Authority becomes first US utility to buy power from advanced reactor design
- Hermes 2 plant will power Google data centers in Tennessee and Alabama
- Project removes financial risk from consumers while supporting nuclear innovation
- Deal expands Google’s total nuclear commitment to 500 megawatts through 2035
Google and Kairos Power announced a groundbreaking nuclear energy partnership that will power the tech giant’s data centers starting in 2030. The deal marks a turning point for advanced nuclear technology in the United States.
The Tennessee Valley Authority agreed to purchase up to 50 megawatts from Kairos Power’s Hermes 2 reactor. This makes TVA the first American utility to sign a power purchase agreement with an advanced nuclear plant design.
The reactor will generate enough electricity to power about 36,000 homes. Google’s data centers in Montgomery County, Tennessee, and Jackson County, Alabama will receive this clean energy.
This partnership builds on Google’s existing commitment to nuclear power. The company previously ordered 500 megawatts of power from multiple Kairos reactors, targeted to come online through 2035.
Financial Structure Protects Consumers
The deal structure protects consumers from construction risks. Google and Kairos will bear all financial risks associated with building the first-of-a-kind project.
TVA provides the revenue stream through its power purchase agreement. This arrangement allows innovation without putting ratepayers on the hook for potential cost overruns.
“We think this solves the problem of making sure that consumers don’t carry that first-of-a-kind cost and risk,” said TVA CEO Don Moul. The utility declined to disclose the electricity purchase price.
Hermes 2 received its construction permit from the Nuclear Regulatory Commission in November 2024. Kairos must still apply for an operating license before the plant can start operations.
The reactor will be built near Oak Ridge National Laboratory in Tennessee. This location has deep roots in nuclear science dating back to the Manhattan Project.
Advanced Technology Promises Lower Costs
Kairos Power’s reactor design differs from traditional nuclear plants currently operating in America. The Hermes 2 uses liquid salt as coolant instead of light water.
This design allows the plant to operate at near atmospheric pressure. Lower pressure means Kairos can use thinner, less expensive materials in construction.
The 50-megawatt output is much smaller than typical nuclear plants that average 1,000 megawatts. When Kairos launches commercially, the reactor design will increase to 75 megawatts.
One goal is creating a standardized reactor design to cut future deployment costs. Mike Laufer, Kairos CEO, said the company will develop supply and manufacturing infrastructure through Hermes 2 construction.
“We’d be ready to deploy multiple reactors in series at the same sites in a very cost-efficient way,” Laufer explained. Google and Kairos are exploring options for additional plant locations.
The nuclear industry has struggled with massive cost overruns and delays. Plant Vogtle in Georgia cost $18 billion more than expected and opened seven years behind schedule.
Startups like Kairos believe smaller reactors will prove faster and more affordable to build. However, utilities have remained cautious about committing to unproven advanced reactor designs.
Tech companies are driving demand for clean, reliable power to support artificial intelligence operations. Google specifically wants to commercialize advanced nuclear technology and deploy it at scale.
Amanda Peterson Corio, Google’s global head of data center energy, said lessons from Hermes 2 will help drive down costs for future reactors. The project aims to improve economics of clean power generation beyond the Tennessee Valley region.
Other companies developing small modular reactor designs include NuScale Power, Oklo, and BWX Technologies. Greater adoption and regulatory acceptance should benefit all advanced nuclear developers.
The Hermes 2 reactor is scheduled to begin operations in 2030 at Oak Ridge, Tennessee.
