Google picks Tennessee as site for its nuclear reactor, what makes the project important at a time when America has stopped building nuclear plants

Alphabet’s Google and nuclear startup Kairos Power announced a landmark partnership on Monday to deploy an advanced nuclear plant in Tennessee, with the goal of connecting to the Tennessee Valley Authority 's (TVA) electric grid by 2030. The project marks a significant step toward a new era of nuclear power in the United States, which has seen a halt in new construction for decades. The last two reactors built in the U.S. at Plant Vogtle in Georgia cost $18 billion more than expected and started operations seven years behind schedule in 2023 and 2024. The project’s problems are reported to have played a role in the bankruptcy of industry giant Westinghouse.

Under the agreement, TVA has committed to purchasing up to 50 megawatts of power from Kairos Power's Hermes 2 reactor. According to a report by CNBC, this is the first time that a U.S. utility has signed a power purchase agreement with an advanced nuclear reactor, according to the companies. The electricity generated, enough to power approximately 36,000 homes, will be used to support Google's energy-intensive data centers in Montgomery County, Tennessee, and Jackson County, Alabama.

Google plans to solve America's nuclear industry problems
The partnership aims to tackle a major obstacle that has plagued the U.S. nuclear industry: the immense cost and financial risk associated with building new plants. In this collaboration, Kairos and Google will bear the financial burden of constructing the first-of-its-kind project, while TVA provides a stable revenue stream through its power purchase agreement.

The U.S. has not seen significant nuclear construction for decades due to massive budget overruns and delays, such as the Plant Vogtle project in Georgia, which went $18 billion over budget and started operations seven years late.

Why startups are betting on Nuclear energy
Startups like Kairos Power are betting that their smaller, more affordable advanced reactors can avoid the issues that plagued large-scale projects like Vogtle. The Hermes 2 reactor, which received its construction permit from the Nuclear Regulatory Commission (NRC) in November 2024, is scheduled to begin operations in Oak Ridge, Tennessee, by 2030. The companies will still need to secure an operating license from the NRC before the plant can go live.

For technology giants like Google, advanced nuclear power represents a crucial part of their strategy to meet the rising energy demands of artificial intelligence while maintaining their commitment to carbon-free energy. Google has already placed orders with Kairos for a total of 500 megawatts of power from future reactors, targeting a 2035 rollout.