Google invests in Iowa nuclear plant restart with $1.9 billion US government loan

The U.S. Department of Energy announced a $1.9 billion loan to NextEra Energy to restart the Duane Arnold nuclear power plant in Iowa, which has been shuttered since 2020. Google has agreed to purchase power from the 615-megawatt facility to support its expanding artificial intelligence data centers. This project is part of a broader trend of tech giants utilizing retired nuclear reactors to meet soaring electricity demands, alongside similar restart efforts at Three Mile Island and Palisades.

Duane Arnold nuclear plant restart

• ▪The U.S. Department of Energy announced on September 8, 2026, a $1.9 billion loan to NextEra Energy to help restart the shuttered Duane Arnold nuclear power plant in Linn County, Iowa
• ▪NextEra Energy announced plans to refurbish the Duane Arnold nuclear power plant reactor and seek regulatory approval to restart operations by the spring of 2029
• ▪The Duane Arnold nuclear power plant in Linn County, Iowa, has been inactive since 2020, when an intense rainstorm damaged the facility and cheap natural gas made repairs economically unappealing

AI data center electricity demand

• ▪The rapid rise of artificial intelligence and broader economic electrification are projected to nearly triple the electricity demand of the data center sector by 2035
• ▪Technology companies are increasingly seeking power purchase agreements with shuttered nuclear power plants to secure clean, firm electricity for artificial intelligence data centers

Federal nuclear energy loans

• ▪The Biden administration previously approved a $1.52 billion federal loan to Holtec International to assist in reopening the Palisades nuclear plant in Michigan
• ▪The $1.9 billion federal loan to NextEra Energy represents the second nuclear restart loan from the Trump administration, following a $1 billion loan to Constellation Energy for Three Mile Island
• ▪Department of Energy loan office director Greg Beard stated that the Duane Arnold nuclear plant investment will help restore American nuclear leadership and strengthen energy security

Nuclear plant revival trend

• ▪No company has ever successfully restarted a retired nuclear reactor in the United States, though three major restart attempts are currently underway
• ▪Constellation Energy is working to restart a dormant reactor at the Three Mile Island nuclear plant in Pennsylvania to supply electricity to Microsoft artificial intelligence data centers
• ▪Holtec International's effort to reopen the Palisades nuclear plant in Michigan faced delays due to damaged steam generators, but the company has begun loading fuel into the reactor

NextEra Energy refurbishment project

• ▪NextEra Energy plans to increase the capacity of the Duane Arnold nuclear power plant by 14 megawatts during refurbishment, bringing the total capacity to 615 megawatts
• ▪NextEra Energy CEO John Ketchum stated that 50 megawatts of the Duane Arnold nuclear plant's capacity will be allocated to the local power cooperative

Google data center power supply

• ▪Google is reportedly planning to construct up to six data centers near the Duane Arnold Energy Center in Iowa
• ▪Google has agreed to purchase a portion of the electricity generated by the Duane Arnold nuclear power plant to power its artificial intelligence data centers

Debatable claims

• ▪The rapid expansion of AI data centers poses an unacceptable risk to energy grids
• ▪Restarting retired nuclear reactors is a viable way to meet surging electricity demands
• ▪The US government should fund the restart of retired nuclear power plants

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