Google has announced a new agreement to purchase power from small modular reactor (SMR) developer Kairos Power. The tech giant’s decision signals a growing trend among technology companies turning to nuclear power as a solution for the escalating energy demands of data centers, which are critical for supporting artificial intelligence (AI) operations and cryptocurrency mining.

Data centers rapidly expanded in recent years, with energy requirements sometimes reaching the level of a small city. This demand for a continuous, reliable power supply has led companies to explore nuclear energy, which offers around-the-clock availability that other renewable sources, such as wind and solar, cannot consistently provide.

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In addition to Google, companies like Microsoft and Amazon have recently secured nuclear power deals to keep their data centers operational and meet ambitious sustainability goals.

“We believe that nuclear energy has a critical role to play in supporting our clean growth and helping to deliver on the progress of AI,” Michael Terrell, senior director for energy and climate at Google, said. “The grid needs these kinds of clean, reliable sources of energy that can support the build out of these technologies. We feel like nuclear can play an important role in helping to meet our demand, and helping meet our demand cleanly, in a way that’s more around the clock.”

Google’s agreement with Kairos Power involves purchasing electricity from multiple small modular reactors, with the company indicating that it is open to further investments in this energy source. The tech company stated that the purchase would “send an important demand signal to the market,” potentially encouraging further development of nuclear power technologies.

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Small modular reactors are viewed as a promising alternative to traditional large-scale nuclear facilities, offering potential advantages in cost and efficiency. While conventional nuclear plants often face delays and budget overruns, SMRs are designed to be easier to construct and operate. However, there are currently only three operational SMRs worldwide, none of which are located in the United States.

Google plans for the first reactor from this deal with Kairos Power to come online by 2030, with additional reactors expected to be operational by 2035.