Google's Nuclear Power Plant Secures $1.9B US Loan to Power AI Data Centers in Iowa

Google Secures Major Nuclear Power Deal for AI Infrastructure

Google's nuclear power plant revival received a significant boost as the U.S. Department of Energy finalized a $1.9 billion loan to NextEra Energy for restarting Iowa's Duane Arnold Energy Center1

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. The facility, which operated for over 45 years before shutting down in 2020, will generate 615 MW of clean energy to support Google's expanding AI and cloud infrastructure in Iowa3

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. This marks the second major federal investment in revived nuclear power plants, signaling the Trump administration's commitment to addressing AI-driven electricity demand through clean power sources.

Why Duane Arnold Nuclear Plant Matters for AI Data Centers

The restart nuclear plant initiative directly addresses the surging energy demands of AI operations. Google announced last October a multi-year agreement to purchase power from the facility, making the investment financially viable2

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. The tech giant is reportedly planning to build up to six data centers near the Duane Arnold nuclear plant, which hasn't operated since an intense rainstorm damaged it in 20201

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. Rather than repair it at the time, NextEra Energy chose to mothball the facility when cheap natural gas flooded the market, making nuclear power economically unappealing.

The landscape has shifted dramatically. After decades of stagnant growth, AI's sudden rise coupled with broader electrification means utilities are scrambling to find new generating sources. New data centers are expected to nearly triple the sector's electricity demand by 20351

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. When Duane Arnold comes back online in early 2029, it will provide enough power for nearly 500,000 homes3

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. However, only 50 megawatts will be set aside for the local power cooperative, covering just 18% of Iowa's demand growth since 2021—the year before ChatGPT was released1

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Trump Administration Doubles Down on Nuclear Energy Strategy

Deputy Energy Secretary James Danly stated the Iowa power plant's restart will "drive down electricity costs," though specifics weren't provided1

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. The $1.9 billion loan follows a $1 billion Department of Energy loan extended to Constellation Energy last year for restarting a reactor at Three Mile Island, backing Microsoft's AI ambitions1

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. President Donald Trump signed several executive orders in 2025 aimed at accelerating nuclear development, including one directing the Energy Department to stop most previous plans for diluting surplus plutonium and instead make it available to private companies2

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Tech Giants Race to Secure Clean Energy for AI

Shuttered nuclear plants are becoming the tech industry's preferred choice for quickly providing clean, firm power. Microsoft signed a deal with Constellation Energy two years ago to restart a reactor at Three Mile Island that last operated in 2019, scheduled to restart in 2028 and generate 835 megawatts1

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. Meta reached agreements supporting up to 6.6 gigawatts of new and existing nuclear power by 20352

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. Another facility in Illinois, Constellation Energy's Clinton Clean Energy Center, was in danger of closing before Meta agreed to buy all clean energy attributes from the 1.1 gigawatt power plant1

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Google also pledged an additional $7 billion investment in Iowa over two years, including new and expanded infrastructure supporting its cloud and AI businesses2

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. This investment pattern reveals how major tech companies like Meta, Amazon, Microsoft and Google are pouring billions into data centers and infrastructure needed to train and run increasingly powerful AI models.

Limited Options Remain for Nuclear Restarts

During the refurbishment process, NextEra Energy will squeeze an additional 14 megawatts from the Duane Arnold facility, bringing the total to 615 MW1

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. Together with Three Mile Island and Clinton, these three power plants represent the lowest hanging fruit in the U.S. According to a report from UtilityDive, there might be only one or two more viable candidates, including San Onofre in California, though those have been shuttered longer and would require substantially more work to bring back online1

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. Watch for increasing competition among tech giants for remaining nuclear capacity as AI infrastructure demands continue climbing through 2035.