NextEra Energy has received a $1.9 billion loan from the U.S. Department of Energy to finance the refurbishment of the Duane Arnold Energy Center, a nuclear power plant in Iowa. The plant, which has been inactive since 2020 due to storm damage, is set to restart operations in 2029. This loan follows a similar $1 billion loan given last year to Constellation Energy to revive the Three Mile Island reactor, indicating a renewed federal focus on nuclear energy as a stable power source.
Google announced plans last year to develop up to six data centers near the Duane Arnold facility. These centers are expected to significantly increase electricity demand in the region, driven by the rapid growth of AI technologies. The plant's restart is expected to help meet this demand while providing clean and reliable energy.
NextEra plans to increase the plant's output by 14 megawatts during refurbishment, bringing its total capacity to 615 megawatts. A portion of this power, about 50 megawatts, will be allocated to the local power cooperative, covering a notable share of Iowa's recent electricity demand growth.
The renewed interest in nuclear power comes amid broader shifts in the energy market. Previously, low natural gas prices made nuclear less economically viable. However, the surge in electricity needs from AI data centers and wider electrification efforts has prompted utilities and tech companies to reconsider nuclear energy.
Other tech companies are also engaging with nuclear power projects. Microsoft is partnering with Constellation Energy to restart the Three Mile Island reactor, expected to generate 835 megawatts by 2028. Meta has secured clean energy attributes from the Clinton Clean Energy Center in Illinois to offset emissions from its Hyperion AI data center.
These initiatives highlight a trend of repurposing existing nuclear facilities to provide clean, firm power quickly, supporting the tech industry's growing energy demands while addressing environmental concerns. While a few other shuttered plants could be candidates for revival, many require more extensive work due to longer periods of inactivity.