Google has entered an agreement with nuclear power startup Kairos Power to acquire carbon-free electricity, aiming for a 2030 initial delivery and full deployment by 2035. This initiative is part of Google’s strategy to support its AI data centers, which are constrained by power availability. Other tech companies, including Oracle and Microsoft, are also exploring small modular reactors to meet their energy needs. Despite skepticism regarding the AI industry’s viability, investments continue, driving innovation in power production and supporting the tech sector’s growth.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Google partners for small nuclear reactors | Shift from fossil fuels to nuclear energy | Widespread nuclear use for sustainable tech operations | Demand for sustainable energy sources |
| AI data centers require new power solutions | Transition from traditional power to nuclear | AI tech dominated by 24/7 reliable power availability | Growth of AI technology |
| Rise of small modular reactors (SMRs) | Move from conventional to modular nuclear power | Increased acceptance and deployment of small reactors | Innovation in energy production |
| Competition drives advancements in nuclear technology | Change from limited power options to robust SMRs | Improved nuclear tech reducing energy scarcity | Demand for power in tech industries |
| Diminishing stigma around nuclear energy | Evolution from negative perceptions to acceptance | Public embrace of nuclear solutions for energy shortages | Environmental concerns |
| Nuclear power seen as a solution for data center limits | Shift from energy shortages to energy abundance | Reliable and clean power transforming data infrastructure | Need for scalable energy solutions |
| Tech giants investing heavily in nuclear advancements | Change from limited investment to substantial funding | Significant growth in the nuclear energy sector | Competition for AI supremacy |