Google and NextEra to Restart Iowa’s Duane Arnold Nuclear Plant to Power AI Era

NextEra Energy, Inc. (NYSE: NEE) and Google have announced a landmark agreement to restart the Duane Arnold Energy Center in Iowa—the state’s only nuclear facility—to help meet soaring U.S. electricity demand driven by artificial intelligence (AI) and data center growth. The 615-MW plant, located near Cedar Rapids, is scheduled to return to full operation by the first quarter of 2029, pending regulatory approval.

Under the 25-year agreement, Google will purchase a significant portion of the plant’s output as a 24/7 carbon-free energy source to power its cloud and AI infrastructure. The remaining capacity will be bought by Central Iowa Power Cooperative (CIPCO) on equivalent terms. NextEra Energy will assume full ownership of the facility after acquiring CIPCO and Corn Belt Power Cooperative’s combined 30% stake.

The Duane Arnold restart—shut down in 2020 after nearly five decades of service—marks a major return of nuclear generation to Iowa and underscores the growing convergence between Big Tech and clean baseload power. NextEra said the project will create around 400 permanent jobs and generate more than $9 billion in total economic benefits for Iowa, including $3 million annually in new tax revenue.

“This partnership with Google not only brings nuclear energy back to Iowa—it accelerates the development of next-generation nuclear technology,” said NextEra CEO John Ketchum, highlighting the collaboration’s role in strengthening U.S. grid reliability and advancing national energy independence.

Google, which has invested more than $7 billion in Iowa since 2007, framed the deal as essential to its AI-driven growth strategy. “Reopening Duane Arnold delivers reliable, clean power and hundreds of new jobs in the Hawkeye State,” said Ruth Porat, president and CFO of Alphabet and Google, calling it a model for similar clean energy investments across the country.

The companies also announced a strategic agreement to explore new nuclear generation projects nationwide, positioning nuclear power as a cornerstone of the AI and data economy. This comes amid growing concern that U.S. electricity demand—expected to rise sharply through 2035 due to AI, electrification, and manufacturing—will outpace renewable and grid expansion without firm, low-carbon generation sources.

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Iowa officials hailed the move as a major milestone in the state’s energy evolution. Governor Kim Reynolds praised the project as “a fusion of nuclear and AI innovation that will drive economic growth, strengthen communities, and keep America competitive.”

Economic studies suggest that the restart will add over 1,600 jobs during construction, with $340 million in annual output statewide once operational. In Linn County, where the plant is located, the project is expected to sustain 400 high-paying, full-time positions and generate $127 million in long-term local earnings.

The Duane Arnold revival follows comprehensive engineering evaluations and coordination with the Nuclear Regulatory Commission (NRC). NextEra Energy emphasized that the restart will not raise costs for Iowa ratepayers, as Google’s long-term power purchase agreement (PPA) covers all production expenses.

The announcement further deepens NextEra and Google’s long-standing energy partnership, which already spans nearly 3 GW of clean energy projects across the U.S., including wind, solar, and battery assets.

The deal also signals a broader renaissance for U.S. nuclear power, as utilities and tech giants alike revisit the technology’s potential to provide round-the-clock carbon-free power amid tightening climate goals and unprecedented data center growth.

By Charles Kennedy for Oilprice.com

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