Google and NextEra Energy Join Forces to Revive Iowa Nuclear Plant for AI-Driven Energy Demand

NextEra and Google agree deal to reopen US nuclear plant

NextEra has agreed to reopen a nuclear power station in Iowa that will primarily provide power to Google as the tech giant races to secure clean energy to drive its artificial intelligence data centres. The largest renewable energy company in the US will lead the redevelopment of Duane Arnold Energy Center after Google signed a 25-year agreement to buy electricity from the power station. After being shut down for five years, it is expected to cost more than $1.6bn to restart. Duane Arnold, a 615-megawatt plant, is expected to start delivering power by 2029, according to NextEra. It is the third US nuclear plant to begin the process of restarting operations. "This partnership serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy," said Ruth Porat, president and chief investment officer of Alphabet and Google. Google said it also agreed to explore opportunities with NextEra to deploy new nuclear generation capacity in the US amid soaring demand for electricity linked to the rollout of AI. Nuclear power has been enjoying a renaissance in recent years following a move away from the fuel source due to increased competition from low-cost shale gas and the 2011 Fukushima accident in Japan. The ability of nuclear energy to provide round-the-clock carbon-free power has pushed it back into the spotlight as the world aims to slash emissions while feeding a rapidly growing need for electricity. Google's power supply deal with NextEra follows a similar agreement between Microsoft and Constellation Energy last year, which is expected to enable the Three Mile Island nuclear plant in Pennsylvania to reopen in 2028. The Palisades nuclear power plant in Michigan is scheduled to be the first fully decommissioned US nuclear power plant to reopen later this year. It is much more cost effective and faster to reopen a mothballed power plant than build a new facility from scratch, according to nuclear experts. Critics of nuclear energy have warned that any effort to reopen retired power plants must not be rushed and should adhere to strict regulatory standards. Edwin Lyman, a physicist at the Union of Concerned Scientists, said restarting Duane Arnold should proceed with extreme caution, particularly because of damage it sustained in a type of storm known as a derecho. "The ageing reactor, which is the same design as the reactors that melted down at Fukushima, Japan in 2011, was shut down after it was struck by a derecho in August 2020 and suffered serious damage, including the destruction of its cooling towers," Lyman said. "Until NextEra presents a realistic estimate of the cost to rebuild the plant and restore it to a safe condition is developed, no one will really know if this reactor will be able to generate affordable electricity." However, industry regulation is expected to grow and evolve as there are additional efforts to reopen shuttered reactors, according to Adam Stein, director of the nuclear energy innovation programme at The Breakthrough Institute. "Thanks to the Palisades restart, there is a regulatory process and a clear understanding of what inspections need to be completed."

Google and NextEra to revive major Iowa nuclear facility as AI energy demand surges

Google and American electrical utility giant NextEra Energy announced a partnership Monday to revive Iowa's only nuclear power plant to meet growing low-carbon energy demand from artificial intelligence The Duane Arnold Energy Center, which closed in 2020, could begin operating in early 2029, pending regulatory approval. "Once operational, Google will purchase power from the 615-MW plant as a 24/7 carbon-free energy source to help power Google's growing cloud and AI infrastructure in Iowa, while also strengthening local grid reliability," the companies said in a press release. The Central Iowa Power Cooperative, the state's largest energy provider, has agreed to buy surplus electricity leftover by Google. The Duane Arnold Energy Center's prior shutdown had come at a time when the nuclear sector was struggling to compete with natural gas and other renewable energy sources due to high operating costs and public perception challenges around safety. However, the nuclear site's revival marks a trend, as energy demand in the U.S. has been surging, with tech companies like Google investing billions in developing power-hungry AI data centers. According to the U.S. Energy Information Administration, total annual electricity consumption stateside hit a record high in 2024 -- a ceiling that could continue to rise if data centers continue to expand at their current pace. In the face of rising energy demands, Washington and the tech industry have been pushing nuclear energy as a potential way to address growing concerns about AI computing's impacts on local energy grids. The Iowa project follows similar nuclear partnerships, including one between Constellation Energy and Microsoft. Meanwhile, computer giant Oracle recently said it is designing a data center powered by three small nuclear reactors. In addition to bringing more energy online, nuclear energy provides a potential pathway for Big Tech to continue their data center rollout while also curbing carbon emissions. "[The Google-NextEra partnership] serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy," Ruth Porat, president and chief investment officer of Alphabet and Google, said. Media outlets had taken note when Google, in June, had quietly removed its commitment to achieving net-zero carbon emissions by 2030 from the main page of its corporate sustainability website amid expansion of its AI plans. Data center projects across the U.S. have also faced growing public pushback. In September, Google withdrew plans for a new data center in Indiana after community groups raised concerns about resource use and environmental impacts, local media reported. On the other hand, Iowa has so far proved receptive to such projects, with Google having invested more than $6.8 billion into data centers in the state. Iowa lawmakers have praised the latest project in the joint release, saying it will support local jobs and energy grids. "Bringing Duane Arnold back online is a big win for Linn County and the entire state of Iowa," State Senator Charlie McClintock said, adding that the announcement shows Iowa can "keep the lights" on for residents and businesses.

Google to buy power from NextEra nuclear plant being revived

NextEra Energy Inc. plans to restart a nuclear power plant in Iowa, primarily to supply Google data centers. The Duane Arnold Energy Center is expected to start delivering power by 2029 following agreements with Google, according to a statement Monday. The 615-megawatt plant shut down in 2020, well before the AI boom that's stoked demand for new power sources. The enormous electricity demands of data centers have shaken up the energy industry, with tech companies rushing to connect massive facilities to the power grid. Hyperscalers prize nuclear energy for its ability to provide clean round-the-clock power. But building new nuclear reactors takes several years. Reviving mothballed facilities is expected to be a faster solution, though only a handful appear viable for a return. "The speed with which this deal appears to have come together is further evidence of strong demand for power, particularly with baseload and zero emitting characteristics," Sophie Karp, an analyst with KeyBanc Capital Markets, wrote in a research note. Constellation Energy Corp. is working to bring one of the reactors at Three Mile Island in Pennsylvania back into service by 2027. Holtec International plans to restart the Palisades plant in Michigan by early next year. Meanwhile, South Carolina utility Santee Cooper said last week it's talking to Brookfield Asset Management about finishing the partially built VC Summer project that was abandoned in 2017 as costs spiraled. NextEra agreed to sell Google electricity from Duane Arnold for 25 years. NextEra is also buying out the plant's minority owners, Central Iowa Power Cooperative and Corn Belt Power Cooperative, and will sell the remaining electricity from the plant to CIPCO on the same terms Google receives. Google and NextEra also signed an agreement to explore development of a new nuclear generation. NextEra now has almost three gigawatts of energy projects completed with Google across the U.S. NextEra gained as much as 3.5% after the close of regular trading in New York. 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.

Our new agreement with NextEra Energy will bring Iowa's only nuclear plant back to life.

Today, we announced a collaboration with NextEra Energy to accelerate nuclear deployment across the U.S., including the restart of the Duane Arnold Energy Center in Iowa. We expect Duane Arnold to be back online in early 2029, and the plant will provide more than 600 MW of clean, safe, "always-on" nuclear energy to the regional grid. This will support our growing cloud and AI infrastructure in Iowa and bring thousands of jobs and substantial economic benefits to the state. Through this agreement, we're enabling the investment to restart the plant and covering costs for the production of energy from Duane Arnold. Restarting a once fully operational plant is the fastest path to unlock large-scale nuclear power to meet AI growth in the near-term. This builds on other ways we're working to rapidly enable access to reliable, affordable, and scalable energy solutions, from advancing new clean generation to making our demand more flexible and deploying next-generation transmission technology.

NextEra Energy Climbs 4% In Tuesday Pre-Market: What's Going On? - Alphabet (NASDAQ:GOOG), Constellation Energy (NASDAQ:CEG)

NextEra Energy (NYSE:NEE) stock climbed 3.95% before the bell on Tuesday, after the company teamed up with Alphabet's Google (NASDAQ:GOOGL) (NASDAQ:GOOG) to resurrect an Iowa-based nuclear power plant that was decommissioned five years ago. Clean Power Strategy for AI Growth On Monday, the two companies agreed to revive the Duane Arnold Energy Center near Cedar Rapids, with operations expected to resume by early 2029 -- a move widely seen as a response to the tech industry's soaring power demand, especially for AI computing. As part of the agreement, Google has committed to a 25-year contract to buy electricity from the 615-megawatt plant. Both NextEra and Google have also shown interest in exploring the potential of new nuclear technology. "The revival of Duane Arnold signifies an important landmark for NextEra Energy," stated CEO John Ketchum. "Our collaboration with Google not only brings nuclear energy back to Iowa -- it also fast-tracks the development of next-generation nuclear technology." NextEra has also reached agreements to acquire the 30% stake in the Duane Arnold plant held by Central Iowa Power Cooperative and Corn Belt Power Cooperative, which will make NextEra the plant's sole owner. Ruth Porat, President and Chief Investment Officer of Alphabet and Google, said she sees this initiative as a blueprint for the kind of investments needed to expand energy capacity, ensure reliable clean power, and generate jobs that will fuel the AI-driven economy. Power Is The 'True Bottleneck' For AI Growth The revival of the Duane Arnold Energy Center is a significant development in the U.S. energy sector. It is a clear indication of the AI sector's increasing reliance on nuclear power to meet its growing energy needs. This aligns with the observations of leading tech analyst Beth Kindig, who recently highlighted that the true bottleneck for the AI industry's growth is rapidly becoming power. In June, Meta Platforms (NASDAQ:META) recently expanded its clean energy collaboration with renewable energy developer Invenergy to meet its power needs for data center growth and clean energy goals. Last year, Microsoft (NASDAQ:MSFT) signed a 20-year power purchase agreement with Constellation Energy (NASDAQ:CEG) to source carbon-free energy from the renewed Three Mile Island Unit 1. This was part of Microsoft's efforts to align its PJM data centers' power use with carbon-free energy. On a year-to-date basis, shares of NextEra and Google have surged 20.14% and 41.60%, respectively, as per data from Benzinga Pro. READ NEXT: OpenAI Says $1 Trillion AI Buildout Could Lift GDP By 5%, Urges 100 GW Energy Push To Close 'Electron Gap' With China: Report Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. CEGConstellation Energy Corp$393.540.61%OverviewGOOGAlphabet Inc$270.990.39%GOOGLAlphabet Inc$270.510.46%METAMeta Platforms Inc$752.000.16%MSFTMicrosoft Corp$532.060.10%NEENextEra Energy Inc$89.003.45%Market News and Data brought to you by Benzinga APIs

NextEra Energy partners with Google to restart Iowa nuclear plant

(Reuters) -NextEra Energy and Google have reached an agreement to restart an Iowa nuclear power plant shut five years ago, the companies said on Monday, in another sign that data-center power demand is renewing interest in U.S. nuclear energy. The technology industry's quest for massive amounts of electricity for artificial-intelligence processing has renewed interest in the country's nuclear reactors, which generate large amounts of around-the-clock power that is virtually carbon free. Under NextEra's deal with Google, the Duane Arnold Energy Center near Cedar Rapids is scheduled to resume operations in early 2029. The restart is backed by a 25-year agreement for Google to buy electricity from the 615-megawatt plant. Shares of NextEra Energy rose over 1% to $87.24 after the bell. The agreement follows a similar announcement at the former Three Mile Island nuclear power plant, which is owned by Constellation Energy, in Pennsylvania to fuel Microsoft data centers. Google, Microsoft, Amazon and other so-called hyperscalers that operate massive cloud-computing infrastructure have also agreed in recent months to buy future energy produced by advanced nuclear technologies, including fusion and small modular reactors. NextEra and Google also will explore the development of new nuclear technology, the companies said. "Restarting Duane Arnold marks an important milestone for NextEra Energy," said CEO John Ketchum. "Our partnership with Google not only brings nuclear energy back to Iowa -- it also accelerates the development of next-generation nuclear technology. The Duane Arnold Energy Center -- Iowa's lone nuclear plant -- closed in 2020 after operating for 45 years. While there are now three U.S. restart efforts under way, including a Michigan power plant that is not connected to a technology deal, no mothballed nuclear power plant has actually been restarted. "This partnership serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy," said Ruth Porat, president and chief investment officer of Alphabet and Google. One of the plant's minority owners, Central Iowa Power Cooperative, will purchase the remaining portion of the plant's output on the same terms as Google, NextEra said. The utility added that it had also signed agreements to acquire the 30% interest in the Duane Arnold plant owned by that cooperative and Corn Belt Power Cooperative, bringing NextEra's ownership to 100%. (Reporting by Vallari Srivastava in Bengaluru; Editing by Maju Samuel and Cynthia Osterman)