The Tennessee Valley Authority has agreed to buy power from an advanced nuclear plant to fuel Google's data centers in Tennessee and Alabama. The Hermes 2 reactor, developed by Kairos Power, is scheduled to begin operations in 2030 and will provide up to 50 megawatts of energy. This is the first U.S. utility to sign a power purchase agreement for a next-generation nuclear reactor. The deal supports Google's growing demand for electricity and brings firm carbon-free energy to the electricity system.
The Tennessee Valley Authority (TVA) has agreed to purchase power from the Hermes 2 reactor, an advanced nuclear plant developed by Kairos Power, to fuel Google's data centers in Tennessee and Alabama. The reactor, scheduled to begin operations in 2030, will provide up to 50 megawatts of energy [1].
This agreement marks a significant milestone as it is the first U.S. utility to sign a power purchase agreement for a next-generation nuclear reactor. The deal supports Google's growing demand for electricity and brings firm carbon-free energy to the electricity system [2].
The Hermes 2 reactor is designed to generate 50 megawatts of electricity, enough to power approximately 36,000 homes. The reactor will be connected to the TVA grid and is expected to start operating at Oak Ridge, Tennessee, in 2030 [1]. Kairos Power and Google signed an agreement last year to launch the startup's nuclear technology at a commercial scale, with Google committing to purchasing up to 500 megawatts of power through multiple deployments of the SMR [2].
The collaboration between TVA, Kairos Power, and Google aims to accelerate the deployment of innovative nuclear technologies and support the growing digital economy. The PPA is the first signed between a U.S. utility and an advanced Gen IV SMR, demonstrating the potential of small modular reactors (SMRs) in the data center sector [2].
The Hermes 2 plant will demonstrate Kairos Power's Fluoride Salt-Cooled High-Temperature Reactor (KP-FHR) technology, which uses fluoride molten salt as a coolant and ceramic, pebble-type fuel. This technology diverges from traditional Gen III water-cooled reactors and has the potential to be more cost-effective and safer [2].
The project is part of a broader effort by technology companies to invest in advanced nuclear power to meet the demand from artificial intelligence while adhering to environmental goals. Google has placed orders with Kairos for reactors totaling 500 megawatts of power that are targeted to come online through 2035 [1].
References:
[1] https://www.cnbc.com/2025/08/18/google-kairos-nuclear-smr-tennessee-valley-authority-tva-data-center-ai.html
[2] https://www.datacenterdynamics.com/en/news/tva-signs-50mw-ppa-with-smr-developer-kairos-for-google-data-centers-in-tennessee-and-alabama/
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