The US is grappling with a power capacity shortage fueled by the intensifying AI competition with China. Google's energy strategy chief, Caroline Golin, highlighted the urgency, stating that the country is in a 'capacity crisis' and racing against China in the AI arena. The emergence of China's DeepSeek AI firm, perceived as more cost-effective and efficient, has intensified concerns. To address this challenge, Google has forged a partnership with Kairos Power to procure 500 megawatts of power from small modular nuclear reactors. This move underscores the growing recognition of nuclear power's potential to meet the escalating energy demands of the tech sector.
The U.S. is facing a power capacity crisis as the tech sector races against China to achieve dominance in artificial intelligence, an executive leading the energy strategy of Alphabet’s Google unit said this week. The emergence of China ’s DeepSeek artificial intelligence firm sent the shares of major power companies tumbling in late January on speculation that its AI model is cheaper and more efficient.
Small modular reactors are advanced designs that promise to one day speed up the deployment of nuclear power because they have smaller footprints and a more streamlined manufacturing process. Large nuclear projects in the U.S. have long been stymied by delays, cost overruns and cancellations. To date, there is no operational small modular reactor in the U.S. Google and Kairos plan to deploy their first reactor in 2030, with more units coming online through 2035.
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