SUMMARYThe U.S. Department of Energy approved a $1.9 billion loan to NextEra Energy to restart Iowa’s Duane Arnold nuclear plant, which has been shut since 2020 and is expected to return in 2029. Google has backed the project as a power source for planned data centers near the site, while the restart is intended to help meet rising electricity demand from AI infrastructure and broader electrification.
The U.S. Department of Energy has approved a $1.9 billion loan to NextEra Energy to restart Iowa's shuttered Duane Arnold nuclear plant, which Google has backed as a power source for its growing AI infrastructure. "The sizable loan is the second of its kind, suggesting that the Trump administration views revived nuclear power as a key source of electricity for tech companies seeking to power their AI data centers," notes TechCrunch. From the report: James Danly, Deputy Secretary of Energy, said that the Iowa power plant's restart in 2029 will "drive down electricity costs," though he did not explain how. Just 50 megawatts will be set aside for the local power cooperative, NextEra CEO John Ketchum said during an earnings call (PDF) last year. That capacity would cover 18% of Iowa's demand growth since 2021, the year before ChatGPT was released.
Google is reportedly looking to build up to six data centers near the Duane Arnold Energy Center, which hasn't operated since 2020 when an intense rainstorm damaged the power plant. Rather than repair it, NextEra decided to mothball it. At the time, cheap natural gas was flooding the market, making nuclear power economically unappealing. A lot has changed in the last six years, though. After decades of little growth in demand, the sudden rise of AI coupled with broader electrification of the economy meant that utilities and power providers were suddenly scrambling to find new generating sources of electricity. New data centers are expected to nearly triple the sector's electricity demand by 2035.