① U.S. Energy NextEra and Google announced a collaboration to restart the Duane Arnold nuclear power facility in Iowa; ② The facility is scheduled to resume full operation in the first quarter of 2029, a move aimed at meeting the needs of AI and data centers. The demand for electricity is growing rapidly due to development; ③ Google will purchase most of the factory's output as a 24/7 carbon-free energy supply.
U.S. energy company NextEra and Google announced a landmark agreement on Monday (October 27) to restart the Duane Arnold Energy Center in Iowa—the state’s only nuclear power facility.
This move will satisfy the needs of artificial intelligence. US electricity demand has grown significantly due to the development of AI and data centers . Demand. The 615-megawatt nuclear power plant is scheduled to resume full operation in the first quarter of 2029, but this requires prior regulatory approval.
Restarting nuclear power plants
The Duane Arnold nuclear power plant ceased operation in 2020 after nearly 50 years of generating electricity. This restart marks the full return of nuclear power to Iowa and highlights the increasingly close integration between large technology companies and clean baseload electricity.
The enormous electricity demands of data centers are reshaping the energy industry, with tech companies scrambling to connect large data centers to the grid. Hyperscale data center operators favor nuclear power because it provides clean, 24/7 uninterrupted power.
However, building a new nuclear reactor takes several years, which means that restarting a mothballed nuclear power plant is considered a faster solution. However, it appears that only a few nuclear power plants are currently feasible for restarting.
According to the latest statement, Google and NextEra have signed a 25-year agreement. Under the agreement, Google will purchase the majority of the factory's output to power its cloud services and artificial intelligence infrastructure, providing a 24/7 carbon-free energy supply. The remaining capacity of the factory will be sold to the Central Iowa Electric Cooperative (CIPCO) on the same terms.
It is understood that NextEra had previously acquired the remaining 30% stake held by the minority shareholders of the nuclear power plant, including CIPCO and the Corn Belt Power Cooperative, meaning that NextEra now fully owns the nuclear power facility.
“The partnership with Google not only brings nuclear energy back to Iowa, but also accelerates the development of next-generation nuclear technologies,” said John Ketchum, CEO of NextEra. He also emphasized the important role this collaboration plays in enhancing the reliability of the U.S. power grid and advancing national energy independence.
"The speed at which this deal was completed further demonstrates the strength of electricity demand, particularly for baseload and zero-emission power," wrote KeyBanc Capital Markets analyst Sophie Kapp in a research report.
Key component of AI development strategy
Google views this collaboration as a key component of its AI -based development strategy. Since 2007, Google has invested over $7 billion in Iowa.
Google Chairman and CFO Ruth Porat stated, "Reactivating the Duane Arnold power plant will provide Iowa with a stable supply of clean electricity and create hundreds of new jobs." She also called it a model for similar clean energy investments nationwide.
These companies also announced a strategic agreement to explore new nuclear power generation projects across the country, positioning nuclear energy as a cornerstone of artificial intelligence and the data economy.
This move comes amid growing concerns about rising U.S. electricity demand, which analysts predict will surge by 2035 due to advancements in artificial intelligence, electrification, and manufacturing, and will outpace renewable energy and grid expansion if no reliable low-carbon power generation sources are available.
Iowa officials hailed the initiative as a major milestone in the state's energy development. Governor Kim Reynolds praised the project as "a fusion of nuclear energy and artificial intelligence innovation that will drive economic growth, strengthen communities, and keep America competitive."
(Article source: CLS)
