Google has signed its first corporate deal to purchase power from multiple small modular reactors (SMRs) to meet the energy needs of its AI systems, marking a key step as AI companies shift toward nuclear power.
SMRs are being promoted as a clean energy solution, aligning with the net-zero carbon ambitions that most major tech companies have embraced.
However, the benefits are still largely theoretical, according to Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research, who suggests that companies must consider nuclear waste disposal — an issue that will grow as SMRs scale up for data center use.
“There are also serious and practical considerations regarding where these SMRs must be located, along with safety and ongoing maintenance issues,” Gogia added. “If anything, the commissioning and use of these SMRs need to be tightly governed and periodically scrutinized, as there are still many unknowns.”
NetworkWorld.com
Additional comments by Greyhound Research analyst:
SMRs are being touted as clean energy given the net carbon zero footprint ambitions that most large tech vendors have committed to. Hence, there is a pent-up interest and demand. However, this is still largely theoretical, and most still need to consider nuclear waste and its disposal; this issue will become particularly critical as these SMRs achieve scale and become an integral part of most DC energy footprints.
There are also severe and practical considerations regarding where these Small Module Reactors (SMRs) must be set up, as well as safety and ongoing maintenance-related issues. If anything, the commission and use of these SMRs need to be tightly governed and periodically scrutinised since there are still many unknowns.
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Having said the above, there are also plenty of benefits to SMRs:
One, they will help provide energy to data centres in remote areas where grid power and other natural forms of energy are hard to reach.
Two, they are relatively safer and less polluting options compared to traditional fossil fuels (read as literally carbon-free!). In the broader schema of things, SMRs are a natural fit for renewable energy sources. Also, given the intense nature of manufacturing, regulatory approvals, and more, the initial CAPEX will be high and require substantial investment capacity and time for the returns to appear in green (pun intended!).
Lastly, installing these in remote locations sounds excellent, but the big tech will have to take into account the history of failure of nuclear reactors and will need to spend enough time and energy to get the local population to see these SMRs in a positive light!
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