Alphabet aims to slash cost of new nuclear with small reactor deployments, CIO says

Core Insights - Alphabet is focusing on reducing the costs of building new nuclear reactors through a partnership with Kairos Power, aiming to deploy small modular reactors [1][4] - The tech sector has significantly invested in nuclear projects to meet the increasing electricity demand driven by artificial intelligence, emphasizing the need for reliable, carbon-free energy [2] - There are challenges in the U.S. nuclear sector, including cost overruns and delays, necessitating immediate action from both public and private sectors to replicate construction processes and lower costs [3][5] Company Initiatives - Google has entered a deal to purchase power from small modular reactors being developed by Kairos Power, with plans to have the first plant operational by 2030 and additional reactors by 2035 [4] - Ruth Porat highlighted the importance of starting the construction of multiple reactors now to effectively drive down costs [5] Industry Context - NextEra's CEO John Ketchum stated that nuclear energy is unlikely to be a viable power solution until 2035 or later, while renewables are currently the quickest and cheapest option to meet rising energy demands [5][6] - NextEra projects a sixfold increase in power demand over the next 20 years, with 17% of that growth attributed to data centers [7] - The U.S. has seen a significant increase in renewable energy installations, with 175 gigawatts added in the past five years compared to only 3 gigawatts of nuclear [7] Future Prospects - NextEra is exploring the possibility of restarting the shuttered Duane Arnold nuclear plant in Iowa, alongside other potential nuclear restarts [8] - There is a significant opportunity for co-locating small modular reactors at existing sites, but the industry needs to narrow down the number of companies involved to a more manageable number [9]