On August 18, 2025, a groundbreaking agreement was unveiled that could reshape the future of clean energy and data infrastructure in the American South. The Tennessee Valley Authority (TVA), the nation’s largest public utility, announced it will purchase power from an advanced nuclear plant to help fuel Google’s rapidly expanding data centers in Tennessee and Alabama. This deal, involving California-based nuclear innovator Kairos Power, marks the first time a U.S. utility has signed a power purchase agreement for electricity from a next-generation nuclear reactor.
The centerpiece of the agreement is the Hermes 2 reactor, an advanced facility scheduled to begin operations in Oak Ridge, Tennessee, in 2030. According to the Associated Press, this reactor will deliver up to 50 megawatts of steady power to the TVA grid, which in turn supplies Google’s data centers in Montgomery County, Tennessee, and Jackson County, Alabama. The move comes at a critical time, as tech companies like Google anticipate a surge in energy needs to power artificial intelligence and cloud computing operations—technologies that are rapidly transforming the digital landscape.
TVA President and CEO Don Moul highlighted the strategic importance of the initiative, telling Knox News, “Energy security is national security, and electricity is the strategic commodity that is the building block for AI and our nation’s economic prosperity. The world is looking for American leadership, and this first-of-a-kind agreement is the start of an innovative way of doing business. 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.”
The Hermes 2 reactor is a significant technological leap. Unlike traditional nuclear plants, Hermes 2 employs fluoride salt-cooled, high-temperature reactor technology, using molten salt as a coolant. This design is not only more efficient but also allows the reactor to run longer, occupy a smaller footprint, and generate less waste, according to the Department of Energy. The reactor will use high-assay low-enriched uranium, a fuel enriched to a higher level than what is used in conventional reactors. While there is currently limited domestic production of this fuel, investments are underway—particularly in Oak Ridge—to ramp up supply and support the new generation of reactors.
The Hermes 2 plant received its construction permit from the Nuclear Regulatory Commission in November 2024, but it still needs to secure an operating license before it can begin generating electricity. The facility represents the second test reactor for Kairos Power in Tennessee; the first, simply called Hermes, is a non-power-producing prototype also located in Oak Ridge. The collaboration between TVA, Kairos Power, and Google is expected to accelerate the deployment of innovative nuclear technologies and bring much-needed firm, carbon-free energy to the region’s electricity system.
For Google, the deal is a vital step toward meeting the company’s ambitious clean energy goals and supporting the digital economy’s relentless growth. Amanda Peterson Corio, Google’s global head of data center energy, emphasized the broader significance of the partnership, stating in a joint news release, “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. Lessons from the development and operation of the Hermes 2 plant will help drive down the cost of future reactors, improving the economics of clean firm power generation in the TVA region and beyond.”
Google will also receive clean energy credits associated with the plant, underscoring the company’s commitment to sustainable operations. The data centers in Clarksville, Tennessee, and Bridgeport, Alabama—both powered by the TVA grid—are central to Google’s cloud and AI ambitions, making reliable, emissions-free energy more crucial than ever.
Mike Laufer, CEO and co-founder of Kairos Power, described the partnership as a milestone for the commercial viability of advanced nuclear energy. “This collaboration is an important enabler to making advanced nuclear energy commercially competitive,” Laufer said in the statement. “The reenvisioned 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.”
The timing of the announcement reflects a broader shift in the energy sector. As reported by AP, the agreement comes amid a spike in power demand—the first in decades—driven largely by artificial intelligence, cloud computing, and the expansion of data centers nationwide. President Donald Trump, recognizing the importance of both AI and energy, recently released a plan to boost AI and build more data centers across the U.S., signing executive orders in May aimed at strengthening the country’s nuclear power sector.
TVA’s move to embrace advanced nuclear technology is part of a larger strategy to meet the region’s growing energy needs while reducing carbon emissions. The utility currently serves 10 million people across seven southern states and has a history of supporting innovative energy projects. Earlier this year, TVA also agreed to collaborate with Knoxville-based Type One Energy to develop a nuclear fusion pilot plant at the former Bull Run plant site, further demonstrating its commitment to next-generation energy solutions.
As industry and utility leaders look to the future, many hope that the partnership between TVA, Kairos Power, and Google will pave the way for more clean energy projects across the country. The Hermes 2 project is expected to serve as a model for how advanced nuclear reactors can be integrated into existing power grids, supporting both economic growth and environmental goals. The lessons learned from Hermes 2’s development and operation could help drive down costs and make clean, firm power generation more accessible, not just in the TVA region but nationwide.
With the Hermes 2 reactor scheduled to come online in 2030, all eyes will be on Oak Ridge as it becomes a proving ground for the next generation of nuclear energy. For now, the agreement stands as a testament to American innovation—and a bold step toward a cleaner, more resilient energy future.
