Utility to buy power from advanced nuclear plant to fuel Tennessee and Alabama Google data centers

Key Points

• The Tennessee Valley Authority (TVA) is set to purchase up to 50 megawatts of energy from the upcoming Hermes 2 advanced nuclear reactor to power Google data centers in Tennessee and Alabama.
• This deal marks TVA as the first U.S. utility to sign a power purchase agreement for electricity from a next-generation nuclear reactor, which is scheduled to begin operations in 2030.
• The collaboration aims to meet the growing energy demands of data centers fueled by artificial intelligence while contributing to carbon-free energy initiatives.
• The Hermes 2 reactor will utilize advanced fluoride salt-cooled technology, allowing for more efficient operations and reduced waste compared to traditional nuclear reactors.

NASHVILLE, Tenn. (AP) — The nation's largest public utility plans to buy power from an upcoming advanced nuclear plant to help fuel Google data centers in Tennessee and Alabama, according to a deal announced Monday.

The Tennessee Valley Authority, California-based Kairos Power and Google say the agreement will deliver up to 50 megawatts of energy to the federal utility's grid that powers the data centers.

The announcement comes at a time when tech companies expect to require a massive amount of power to fuel data centers behind artificial intelligence, and some of them have been especially interested in new nuclear production. President Donald Trump released a plan last month to boost AI and build data centers across the U.S. and in May signed executive orders aimed at boosting nuclear power.

TVA says it is the first U.S. utility to sign a power purchase agreement to buy electricity from a next-generation nuclear reactor. It would rely on the Hermes 2 reactor in Oak Ridge, Tennessee, which is scheduled to begin operations in 2030.

The agreement will power data centers in Montgomery County, Tennessee, and Jackson County, Alabama, and support future growth in the region, the news release said. Google will receive clean energy credits associated with the plant.

“This collaboration with TVA, Kairos Power, and the Oak Ridge community will accelerate the deployment of innovative nuclear technologies and help support the needs of our growing digital economy while also bringing firm carbon-free energy to the electricity system,” Amanda Peterson Corio, Google’s global head of data center energy, said in the news release.

Hermes 2 is the first reactor under a deal between Kairos Power and Google to bring on 500 megawatts of new, advanced nuclear power production to help cover the tech giant's increased demand for electricity.

The new kind of nuclear reactor uses fluoride salt-cooled, high-temperature reactor technology. It uses molten salt as a coolant. Another test version of the plant in Oak Ridge, named Hermes, does not produce electricity.

The Hermes 2 plant received a construction permit from the Nuclear Regulatory Commission in November. The plant still has more steps to complete, including an application for an operating license from the Nuclear Regulatory Commission.

Many next-generation reactors, including Kairos' Hermes 2, will use high-assay low-enriched uranium. The fuel is enriched to a higher level than traditional large nuclear reactors use, allowing the newer reactors to run longer and more efficiently, sit on smaller footprints and produce less waste, according to the Department of Energy.

There’s little of it made in the United States right now. But companies are investing to ramp up production, including in Oak Ridge.

The Tennessee Valley Authority powers 10 million people across seven southern states.