Google CEO Contemplates Nuclear Power for AI Data Centers

Google's Green Energy Exploration

Google CEO Sundar Pichai has revealed that the tech giant is considering nuclear energy as a potential 'green' source to power its data centers. This revelation came during an interview with Nikkei Asia in Tokyo, following the news of the restart plans for Three Mile Island to power Microsoft's AI data centers and the revival of Holtec's Palisades nuclear plant in Michigan.

"For the first time in our history, we have this one piece of underlying technology which cuts across everything we do today," Pichai said of generative AI. He further stated, "I think the opportunity to do well here is something we are leaning into."

Google's Net-Zero Emissions Target

Three years ago, Google announced plans to achieve net-zero emissions by 2030. However, the rapid increase in AI data centers has led to a significant rise in the company's power consumption. Consequently, its greenhouse gas emissions in 2023 jumped 48% more than in 2019 on a carbon-dioxide equivalent basis. As the 2030 deadline looms, Google is likely making efforts to secure green energy and reduce emissions.

"It was a very ambitious target," Pichai said of the net-zero emissions targets, "and we will still be working very ambitiously towards it. Obviously, the trajectory of AI investments has added to the scale of the task needed."

He added, "We are now looking at additional investments, such as solar, and evaluating technologies like small modular nuclear reactors, etc."

Uncertainty Around Google's Nuclear Power Source

While Pichai did not specify where Google might start sourcing nuclear power, it is likely that a significant portion could come from reviving older nuclear power plants. This is similar to Microsoft's approach when it signed a power agreement contract with dormant Three Mile Island on the Susquehanna River near Harrisburg, Pennsylvania.

Recently, the Biden administration closed a $1.52 billion loan with Holtec's Palisades nuclear plant in Michigan to revive it. Also, Sam Altman-backed Nuclear SMR company Oklo announced it had finalized an agreement with the Department of Energy to advance the next phase of the SMR at the Idaho National Lab.

Increased Demand for Uranium

Michael Alkin, Chief Investment Officer at Sachem Cove Partners, stated that the Microsoft-Three Mile Island deal is a wake-up call for those who have not been paying attention. He added that demand already outstrips the supply of uranium and the restart of Three Mile Island "takes that to a bit of a different level."

Additionally, funding markets are becoming more receptive to nuclear deals as governments and big tech understand that the only way to achieve ambitious net zero goals is not with solar and wind but with nuclear power. Furthermore, Goldman's latest note on uranium prices suggests that they are expected to "stairstep " higher over time.

Bottom Line

Google's exploration of nuclear energy as a potential 'green' source for its data centers signals a shift in the tech industry's approach to achieving net-zero emissions. It also indicates the increasing demand for uranium and the potential revival of dormant nuclear power plants. What are your thoughts on this development? Do you think this could be a viable solution for other tech companies striving to achieve net-zero emissions? Share this article with your friends and let's discuss.

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