Google’s Nuclear Power Revival Gets $1.9 Billion Loan for AI Data Centres

NextEra Energy has received a $1.9 billion loan from the U.S. Department of Energy to help restart an Iowa nuclear power plant that Google plans to use as part of its growing artificial intelligence infrastructure strategy.

The funding will support the refurbishment of the Duane Arnold Energy Centre, which stopped operating in 2020 after a severe storm damaged the facility. The plant’s planned restart is expected in 2029.

Nuclear Power Returns as AI Drives Electricity Demand

The loan represents the latest federal investment to bring retired nuclear facilities back online as technology companies seek reliable, carbon-free electricity for expanding AI data centres.

Google announced plans last year to support reviving the Iowa facility. The company is reportedly exploring building multiple data centres near the plant site to support future computing demand.

Reports on Google’s Iowa data centre plans indicate the company could develop up to six facilities near the former nuclear site.

Duane Arnold Restart Plans

NextEra CEO John Ketchum previously said that 50 megawatts of the plant’s output would be reserved for the local power cooperative. The refurbished facility is expected to generate 615 megawatts after upgrades add additional capacity.

NextEra discussed the project in its earnings materials, including plans for the facility’s future operations.

The plant was originally shut down after a 2020 storm caused significant damage. At the time, NextEra decided not to restart operations as low-cost natural gas made nuclear power less competitive.

Tech Companies Turn to Retired Nuclear Plants

Growing demand for electricity from artificial intelligence data centres has changed the economics of nuclear power. Utilities and technology companies are increasingly looking at existing nuclear sites as a faster way to add reliable power capacity.

Industry reports have examined the challenges of restarting retired nuclear plants, including regulatory approvals, equipment upgrades and safety reviews.

Other technology companies have also pursued similar agreements. Microsoft partnered with Constellation Energy to restart a reactor at Three Mile Island, while Meta reached an agreement connected to Constellation’s Clinton Clean Energy Centre in Illinois.

A Limited Number of Nuclear Restarts Available

Duane Arnold is among a small group of retired U.S. nuclear facilities considered suitable candidates for revival. Bringing older plants back online requires extensive technical assessments and regulatory work.

Utility Dive reported on nuclear restart efforts involving facilities including Duane Arnold and other retired reactors as interest in nuclear power grows.

The project highlights how rising electricity demand from AI and data centres is reshaping energy strategies, with companies increasingly looking toward existing nuclear infrastructure for dependable power.