Key facts
- The U.S. Department of Energy has provided a $1.9 billion loan to NextEra Energy.
- The loan is for the refurbishment of the Duane Arnold nuclear power plant in Iowa.
- Google plans to use the power from the refurbished plant to support its AI data centers.
- The plant is expected to restart operations in 2029.
- This follows a similar government loan to Constellation Energy for the Three Mile Island plant.
The U.S. Department of Energy has provided a $1.9 billion loan to NextEra Energy to refurbish the Duane Arnold nuclear power plant in Iowa, which is slated to power Google's planned AI data centers. This move underscores a growing trend where major technology companies are securing clean, reliable energy sources, often through the revival of previously shuttered nuclear facilities.
The loan is the second of its kind, following a similar $1 billion loan extended to Constellation Energy to restart a reactor at Three Mile Island. Deputy Secretary of Energy James Danly stated that the restart of the Iowa plant in 2029 will help lower electricity costs, though specific mechanisms were not detailed. NextEra CEO John Ketchum indicated that 50 megawatts would be allocated to the local power cooperative, sufficient for 18% of Iowa's demand growth since 2021.
Google is reportedly considering building up to six data centers near the Duane Arnold Energy Center, which has been non-operational since 2020 due to storm damage. The increasing demand for electricity driven by AI and broader economic electrification has led utilities to seek new power generation sources, with new data centers expected to nearly triple the sector's electricity demand by 2035. Shuttered nuclear plants are emerging as a preferred option for the tech industry due to their ability to provide clean and consistent power.
Microsoft previously partnered with Constellation Energy to restart a reactor at Three Mile Island, scheduled for 2028. Additionally, Meta has secured clean energy attributes from Constellation Energy's Clinton Clean Energy Center in Illinois to offset its emissions, illustrating another model of corporate energy procurement. The Duane Arnold facility, after refurbishment, will have a total capacity of 615 megawatts, an increase of 14 megawatts from its original design. While other shuttered plants like San Onofre are candidates for revival, they would require more extensive work.