By: Evan Mason
Google has announced a historic agreement to purchase advanced nuclear energy to support its AI technologies and clean, affordable energy goals. This landmark deal, branded as the world’s first corporate agreement for electricity sourced from advanced nuclear technology, signifies a paradigm shift in the way big tech companies develop and power their data centers to continue developing generative AI platforms. On October 14, 2024, Google and Kairos Power, a nuclear energy startup, signed a Master Plant Development Agreement that purports to deploy a fleet of advanced nuclear reactors called small modular reactors (“SMRs”). Google and Kairos agreed to Power Purchase Agreements where Kairos will develop, construct, and operate a series of small modular reactors to provide energy and ancillary services to Google. Other companies, such as Oklo, led by chairman and CEO of Open AI, Sam Altman, are currently working to build small modular reactors to solve the problem of growing demand for AI and the immense energy required to power the technology, without relying on fossil fuels.
As the world faces the urgent need to decarbonize electric consumption, nuclear energy is becoming an increasingly attractive option for reducing carbon emissions. Current electricity grids emit loads of greenhouse emissions and projections indicate that electricity consumption will double by 2026. The need for new energy sources has never been more critical and this demand is especially relevant for supporting technological advancements driving economic growth, including artificial intelligence. The AI that people enjoy using such as the power to draft emails, summarize documents, and recommend music require massive amounts of quick calculations, using special processors called Graphics Processing Units (“GPUs”). GPUs are most efficient in large data centers full of computers where the larger the center, the more efficient the operation but the larger the requirement of energy.
Kairos Power is building small modular reactors to keep up with growing demand for electricity to power technology while providing clean energy to Google data centers to reduce greenhouse gas emissions and contribute to Google’s goal to operate on 24/7 carbon-free energy. SMRs represent a groundbreaking approach to nuclear power, distinguished by their smaller size and modular design. Unlike traditional nuclear power plants, which typically generate 1,000 megawatts or more, SMRs have a capacity of less than three hundred megawatts. The modular aspect of these reactors is designed to be mass-produced and easily transported to a site for installation, allowing them to be deployed in more locations than enormous traditional nuclear reactors. In Kairos’ SMRs, instead of using high-pressure water to cool down the reactor, Kairos uses molten salt which absorbs the heat and circulates it around, making it easier to manage.
Kairos Power was given a permit from the Nuclear Regulatory Commission (“NRC”) for a test site in Tennessee called the Hermes reactor which will operate without power while it undergoes development and testing. However, while SMRs present a promising pathway for nuclear deployment, there are hurdles to overcome before commercial deployment, including regulatory and environmental challenges. The NRC currently offers a combined license (“COL”) which includes a construction permit and operating license in one application. A COL application needs a detailed safety analysis at earlier stages and includes design certification. The Department of Energy recently pledged $900M in funding for nuclear startup applications, showing the federal government’s dedication to nuclear energy as the energy of the future but current regulation stands in the way of getting advanced commercial reactors operational.
By adopting more efficient regulation, the NRC can help position the United States as a leader in advanced nuclear technology while adhering to rigorous safety standards. To expedite commercial SMR deployment while ensuring public safety, current regulations on environment impact should be streamlined to reflect the smaller size and environmental footprint of the reactors. Nuclear startups and consumers would benefit from a tailored environmental review process, which would include an easier pathway for SMRs to be sited in industrial areas that have already gone through extensive environmental impact tests as SMRs provide less safety and environmental risk due to their smaller size and less frequent refueling requirements. Additionally, the NRC could improve the COL process by allowing construction under a provisional license. A provisional license would allow developers to get a head start on the expensive and lengthy manufacturing process while simultaneously interacting with the NRC and its current safety checks.
Small modular reactors are poised to play a vital role in the future of U.S. energy by providing a stable, clean, and resilient power source. By adopting streamlined regulations that reflect the unique benefits of SMRs—such as their smaller size, reduced environmental impact, and flexibility in siting—the U.S. can accelerate their deployment and bolster energy security. As demand for reliable, greenhouse gas-free energy grows, SMRs offer an essential pathway to meet these needs while supporting economic growth and technological advancement.
Student Bio: Evan T. Mason is a second-year law student at Suffolk University Law School. He is a staff member for the Journal of High Technology Law. Evan received a Bachelor of Arts degree in Political Science from the University of Florida in 2023.
Disclaimer: The views expressed in this blog are the views of the author alone and do not represent the views of JHTL or Suffolk University Law School.
