Google-backed small modular reactor (SMR) developer Kairos Power has signed a 50MW Power Purchase Agreement (PPA) with US utility Tennessee Valley Authority (TVA) to deliver power to Google data centers across Tennessee and Alabama.

Under the terms of the agreement, Google will receive the clean energy attributes from the plant via the TVA transmission network. The company has said this will decarbonize the operations of its data centers in Montgomery County, Tennessee, and Jackson County, Alabama.

The PPA is the first signed under an agreement that Kairos and Google inked last year, which saw the search giant commit to purchasing up to 500MW across six to seven reactors, set for operation by 2035.

“To power the future, we need to grow the availability of smart, firm energy sources,” said Amanda Peterson Corio, Google’s global head of Data Center Energy.

“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.”

The PPA is the first signed between a US utility and an advanced Gen IV SMR. The power will be delivered from Kairos Power’s Hermes 2 Plant in Oak Ridge, Tennessee. Construction at the plant located at the East Tennessee Technology Park Heritage Center began last July, with its first unit expected to be completed by late 2027.

“The world is looking for American leadership, and this first-of-a-kind agreement is the start of an innovative way of doing business,” said Don Moul, TVA president and CEO.

"By developing a technology, a supply chain, and a delivery model that can build an industry to unleash American energy, we can attract and support companies like Google and help America win the AI race."

To expedite the delivery of the power via the PPA, Kairos is set to increase Hermes 2's output from 28MW to 50MW generated by a single reactor. The plant is expected to reach full operational status in 2030.

The plant aims to demonstrate the company’s Fluoride Salt-Cooled High-Temperature Reactor (KP-FHR) technology. The SMR diverges from traditional Gen III water-cooled reactors by using fluoride molten salt as a coolant, combined with a ceramic, pebble-type fuel, to transport heat to a steam turbine and generate power.

“This collaboration is an important enabler to making advanced nuclear energy commercially competitive,” said Mike Laufer, Kairos Power CEO and co-founder. “The re-envisioned Hermes 2 gets us closer to the commercial fleet sooner and could only be made possible by close collaboration with TVA and Google, and a supportive local community. We are excited to grow Kairos Power’s operations in Oak Ridge while writing a new chapter in the region’s distinguished nuclear history.”

SMRs are fast becoming a hot topic throughout the data center sector, with more and more companies committing to the technology. Just last week, Equinix signed three major agreements with advanced nuclear developers that together could provide up to 774MWe of power. The colo giant inked deals with Radiant for 20 microreactors, ULC-Energy for 250MWe of power in the Netherlands, and Stellaria for 500MWe of power to be deployed across Europe.

In addition, over the past year, Amazon, Data4, Oracle, Switch, and Endeavour have all signed agreements with SMR developers.