Google, Kairos Power, and the Tennessee Valley Authority (TVA) announced a deal on August 18 to bring an advanced Generation IV nuclear reactor onto the TVA grid. The move is expected to expand opportunities for nuclear and industrial construction suppliers and contractors.
Under the agreement, TVA will purchase up to 50 megawatts (MW) of carbon-free electricity from Kairos Power’s Hermes 2 plant in Oak Ridge, Tenn., beginning in 2030. Originally designed for 28 MW, the facility is being scaled up to meet Google’s rising data center demand in Tennessee and Alabama.
The plant’s energy, delivered through TVA’s grid, will be used by Google to help cut carbon emissions at its data centers in Tennessee and Alabama while supporting future regional growth.
Google said in a statement, “This public-private collaboration will help meet our data center electricity demand with advanced nuclear energy starting in 2030 and power the nuclear renaissance in Oak Ridge, Tennessee.”
The Hermes 2 project represents the first deployment under an order book agreement between Google and Kairos Power to bring 500 MW of advanced nuclear capacity online by 2035.
TVA becomes the first US utility to sign a power purchase agreement (PPA) with an advanced reactor developer. These contracts are typically long-term agreements where companies buy renewable energy at a fixed price.
Kairos Power is developing its fluoride salt–cooled, high-temperature reactor design with an eye on large-scale deployment. That could translate into sustained opportunities for skilled labor, specialized concrete and steel work, and regional supply chain growth in East Tennessee.
Mike Laufer, CEO and co-founder of Kairos Power, called the project a critical step toward commercialization: “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.”
TVA President and CEO Don Moul emphasized that advanced nuclear deployment is tied to economic competitiveness: “Electricity is the strategic commodity that is the building block for AI and our nation’s economic prosperity. This first-of-a-kind agreement is the start of an innovative way of doing business.”
Google’s Global Head of Data Center Energy, Amanda Peterson Corio, said the company views firm nuclear power as essential to scaling digital infrastructure while decarbonizing operations.
The Google-Kairos-TVA announcement aligns with an analysis by ConstructConnect Chief Economist Michael Guckes in his August Data Center Report.
Guckes found that US data center construction starts for the remainder of 2025 are concentrated mainly in the Midwest and South regions. He reported that these two regions account for over 60% of the total market value of projected data center starts through December.
Data center growth is fueling energy infrastructure investment. The ConstructConnect Data Center Report showed energy projects starting in regionally similar areas to data center construction, with the South and West regions accounting for around two-thirds of the total dollar value of planned energy project starts through the end of 2025.
The Google-Kairos project has drawn backing from state and national leaders. Tennessee’s congressional delegation and Gov. Bill Lee touted the state’s legacy of nuclear innovation. Officials highlighted the role advanced nuclear could play in energy security, AI competitiveness, and local job creation.
Construction of Hermes 2 will follow Kairos Power’s ongoing Hermes demonstration reactor, which broke ground in 2025 as the first non-water-cooled US reactor approved in more than 50 years.
TVA is the largest public power provider in the US and serves over 10 million customers. A federal corporation, it operates the nation’s third-largest nuclear fleet alongside 29 hydroelectric dams, a pumped-storage facility, and solar, coal, and gas plants.
As an order book agreement, many details of the Google-Kairos-TVA project have yet to emerge. Once project and bid opportunities emerge, trades, contractors, and suppliers can track milestones to position themselves for potential involvement.
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