Google-Backed U.S. Next-Generation Nuclear Plant: Samsung C&T Bets $70 Million to Secure Priority for Construction Work

[Financial News] As the spread of artificial intelligence (AI) drives a sharp increase in data center power demand, Samsung C&T is moving to gain an early foothold in the U.S. small modular reactor (SMR) market. The company plans to invest approximately $70 million in U.S.-based Kairos Power, which has signed a contract with Google to supply power from next-generation nuclear reactors. Samsung C&T will also secure priority to carry out the engineering, procurement and construction (EPC) work for commercial reactors that Kairos will build in the United States.
Samsung C&T's construction division said on the 22nd that the company will sign a strategic memorandum of understanding with Kairos Power in New York on the 23rd local time for the demonstration and commercialization of next-generation SMRs. The signing ceremony will be held in conjunction with an event hosted by JPMorgan Chase during Climate Week NYC. Samsung C&T will also participate in a review of the feasibility of designing and building the Hermes demonstration reactor that Kairos is developing in Oak Ridge, Tennessee.
Kairos has signed a long-term agreement with Google to develop multiple next-generation nuclear reactors and supply up to 500 MW of electricity through 2035. Hermes 2, a 50-MW-class reactor currently in the demonstration phase, has entered into a power purchase agreement with the Tennessee Valley Authority (TVA) and aims to supply electricity to Google's data centers in 2030.
It has not been confirmed whether Samsung C&T's EPC priority applies directly to the reactors associated with Google's project. However, the possibility that the two businesses will be linked is considered high, given that Google's project is at the core of Kairos' disclosed commercial reactor business. If that happens, Samsung C&T will enter the U.S. next-generation nuclear market as a construction partner from the early stages.
Kairos is developing a next-generation reactor known as KP-FHR, which uses molten salt as a coolant. Light-water reactors, which use water to cool the reactor, require high pressure, while molten-salt reactors can operate at high temperatures under relatively low pressure. The high-temperature heat can also be used for industrial heat supply and hydrogen production.
The United States Nuclear Regulatory Commission (NRC) approved construction of Hermes in December 2023 and Hermes 2 in November 2024. According to Samsung C&T, it had been more than 50 years since a non-light-water reactor received construction approval in the United States. The United States Department of Energy (DOE) is providing up to $303 million in support for the Hermes project.
Rather than betting on a single technology, Samsung C&T is working with multiple reactor technologies. The company previously invested a total of $70 million in NuScale Power and has participated in SMR projects in Romania. This month, it was also selected as a strategic partner for a 1.2-GW SMR project being pursued by Sweden's Studsvik. In effect, Samsung C&T is expanding its reach into light-water reactors in Europe and non-light-water reactors in the United States.
Through this partnership, Samsung C&T plans to identify business opportunities with Kairos in Korea, Southeast Asia, Europe and other regions. Mike Laufer, CEO of Kairos Power, said, "We expect to further accelerate the commercialization of next-generation nuclear power by combining Kairos Power's innovative reactor technology and commercialization and supply model with Samsung C&T's world-class project execution capabilities."
Lee Chang-wook, head of Samsung C&T's Energy Solutions Business Unit and an executive vice president, said, "Through close cooperation with Kairos Power, we plan not only to successfully carry out the SMR demonstration project but also to create diverse business opportunities in the global commercialization market."

[email protected] Jeon Min-kyung Reporter