Google to fund capacity upgrades at 2 US nuclear plants to power AI data centers

Google will directly fund capacity expansions at two US nuclear power plants to meet surging electricity demand from AI data centers — upgrading existing reactors rather than building new ones to secure additional power in a shorter timeframe.

According to Bloomberg, Google has agreed to help finance capacity upgrades at the Vogtle and Hatch nuclear power plants in Georgia, both operated by Georgia Power, a subsidiary of Southern Company.

The upgrades are expected to add about 96 MW of combined generating capacity. Georgia Power will boost output by upgrading equipment and instrumentation at the existing reactors rather than constructing new ones. Building a new nuclear plant takes years, but increasing the output of an existing reactor can be accomplished in a comparatively shorter period.

Google will bear the cost of the expansion. The arrangement involves creating a customized electricity tariff that applies exclusively to Google, with the proceeds covering related expenses. The contract still requires regulatory approval.

As AI data centers multiply rapidly across the United States, debate has grown over who should shoulder the cost of expanding power plants and transmission networks. Critics have warned that if infrastructure investment costs are folded into overall electricity rates, ordinary consumers would end up subsidizing Big Tech's AI race.

Georgia Power said the agreement would prevent the cost of the nuclear expansion from being passed on to general customers.

Big Tech investment in nuclear power has been accelerating. Last year, Constellation Energy signed a deal to supply power generated at an Illinois nuclear plant to Meta Platforms, committing to facility improvements as part of the agreement.

Nuclear power is regaining attention as a primary energy source for AI data centers, which require large amounts of stable electricity around the clock. With new nuclear construction taking years to complete, upgrading the output of existing plants — with Big Tech footing the bill directly — is emerging as a new alternative.