Alphabet(GOOGL.US) is exploring the deployment of small nuclear reactors, and New Era(NEE.US) is optimistic about the potential for co-located deployments.

Alphabet(GOOGL.US) chief investment officer Ruth Porat said the company is seeking to deploy smaller nuclear reactors through a deal with Kairos Power to lower the cost of building new reactors.

The agreement, signed in October, is part of Alphabet's efforts to meet the growing power needs of its artificial intelligence work. Under the deal, the first small modular reactor is expected to come online in 2030, with more reactors to follow by 2035.

Speaking at the S&P Global CERA Week conference, Porat said cost overruns and delays were holding back new nuclear projects, and companies needed to act quickly to build new nuclear plants and replicate the construction process to lower the cost curve.

"If we don't start now in a concentrated way and replicate some of that, that's why Kairos' multi-batch bond is a key proof point that we won't be able to lower the cost curve.

John Ketchum, chief executive of New Era Energy(NEE.US), said nuclear power was unlikely to be a power solution by 2035 or beyond. The company is the world's largest wind and solar producer, with five nuclear plants.

Regarding small modular reactors, Ketchum said there were "huge co-located deployment opportunities" at New Era's existing plants. "But the industry needs to sort out which companies have the right technology."

There are currently about 95 companies in the small modular reactor space. "It really needs to be narrowed down to five or 10," Ketchum added.