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DOE finalizes $1.9 billion loan to restart Iowa nuclear plant backed by Google
Sep 11, 2026
📍 Phliadelphia,PA, USA
The U.S. Department of Energy has finalized a loan of up to $1.9 billion to NextEra Energy to support the restart of the Duane Arnold Energy Center in Iowa, a nuclear power plant that has been offline since 2020.
The project has gained major support from Google, which announced last year that it would help bring the facility back into operation as demand for electricity to power artificial intelligence infrastructure continues to rise.
Duane Arnold was shut down after the plant sustained damage during a severe rainstorm. NextEra ultimately decided not to repair the facility, as inexpensive natural gas at the time made continued nuclear operations less economically attractive.
The company now plans to restore the plant and return it to service in 2029, subject to approval from the U.S. Nuclear Regulatory Commission.
Once operational, the facility is expected to generate approximately 615 megawatts of electricity, enough to supply power to nearly 500,000 homes.
Google is expected to become the plant’s largest customer under an agreement to purchase most of its electricity for 25 years.
The technology company is also reportedly considering the development of as many as six data centers near the nuclear facility as it looks to secure reliable, carbon-free electricity for its expanding AI operations.
The deal highlights the growing connection between the technology industry’s rapid expansion and the country’s increasing demand for electricity.
After years of relatively stable electricity consumption, the growth of AI data centers and broader electrification is creating pressure for utilities and energy companies to bring additional generation capacity online.
Analysts expect electricity demand from data centers to rise sharply over the coming decade, increasing interest in nuclear power as a dependable source of low-carbon electricity.
Deputy Energy Secretary James Danly said the Iowa project could contribute to efforts to reduce electricity costs while strengthening the country’s power supply.
NextEra CEO John Ketchum said approximately 50 megawatts of the plant’s output would be allocated to a local power cooperative.
That amount would account for roughly 18% of Iowa’s electricity demand growth since 2021, with much of the plant’s remaining generation expected to serve Google.
The Duane Arnold project is part of a broader trend in which major technology companies are helping support nuclear facilities that are being restarted or protected from closure.
The Trump administration previously announced a $1 billion loan for Constellation Energy to restart a reactor at Pennsylvania’s Three Mile Island, which has been closed since 2019.
Microsoft has agreed to purchase the electricity generated by that 835-megawatt facility for 20 years, while refurbishment costs are estimated at about $1.6 billion.
The reactor is expected to return to operation in 2028, subject to the necessary regulatory approvals.
Meta has also reached an agreement involving clean-energy credits from Constellation Energy’s 1.1-gigawatt Clinton Clean Energy Center in Illinois.
The Illinois nuclear facility had faced the possibility of closure, but the agreement provides additional financial support while its electricity continues to flow into the regional grid.
Another major nuclear restart effort is underway at Michigan’s Palisades plant, which received approximately $1.5 billion in financing during the Biden administration.
The renewed interest in nuclear power reflects a broader shift in U.S. energy policy as policymakers seek reliable electricity sources to meet rising demand.
President Trump has made nuclear expansion a key part of his energy agenda, including an executive order calling for construction to begin on 10 large nuclear reactors by 2030.
The administration has also supported government financing aimed at bringing shuttered nuclear facilities back online.
Together, these projects demonstrate how the AI boom is creating new partnerships between technology companies, energy producers and the federal government to secure long-term electricity supplies.
The project has gained major support from Google, which announced last year that it would help bring the facility back into operation as demand for electricity to power artificial intelligence infrastructure continues to rise.
Duane Arnold was shut down after the plant sustained damage during a severe rainstorm. NextEra ultimately decided not to repair the facility, as inexpensive natural gas at the time made continued nuclear operations less economically attractive.
The company now plans to restore the plant and return it to service in 2029, subject to approval from the U.S. Nuclear Regulatory Commission.
Once operational, the facility is expected to generate approximately 615 megawatts of electricity, enough to supply power to nearly 500,000 homes.
Google is expected to become the plant’s largest customer under an agreement to purchase most of its electricity for 25 years.
The technology company is also reportedly considering the development of as many as six data centers near the nuclear facility as it looks to secure reliable, carbon-free electricity for its expanding AI operations.
The deal highlights the growing connection between the technology industry’s rapid expansion and the country’s increasing demand for electricity.
After years of relatively stable electricity consumption, the growth of AI data centers and broader electrification is creating pressure for utilities and energy companies to bring additional generation capacity online.
Analysts expect electricity demand from data centers to rise sharply over the coming decade, increasing interest in nuclear power as a dependable source of low-carbon electricity.
Deputy Energy Secretary James Danly said the Iowa project could contribute to efforts to reduce electricity costs while strengthening the country’s power supply.
NextEra CEO John Ketchum said approximately 50 megawatts of the plant’s output would be allocated to a local power cooperative.
That amount would account for roughly 18% of Iowa’s electricity demand growth since 2021, with much of the plant’s remaining generation expected to serve Google.
The Duane Arnold project is part of a broader trend in which major technology companies are helping support nuclear facilities that are being restarted or protected from closure.
The Trump administration previously announced a $1 billion loan for Constellation Energy to restart a reactor at Pennsylvania’s Three Mile Island, which has been closed since 2019.
Microsoft has agreed to purchase the electricity generated by that 835-megawatt facility for 20 years, while refurbishment costs are estimated at about $1.6 billion.
The reactor is expected to return to operation in 2028, subject to the necessary regulatory approvals.
Meta has also reached an agreement involving clean-energy credits from Constellation Energy’s 1.1-gigawatt Clinton Clean Energy Center in Illinois.
The Illinois nuclear facility had faced the possibility of closure, but the agreement provides additional financial support while its electricity continues to flow into the regional grid.
Another major nuclear restart effort is underway at Michigan’s Palisades plant, which received approximately $1.5 billion in financing during the Biden administration.
The renewed interest in nuclear power reflects a broader shift in U.S. energy policy as policymakers seek reliable electricity sources to meet rising demand.
President Trump has made nuclear expansion a key part of his energy agenda, including an executive order calling for construction to begin on 10 large nuclear reactors by 2030.
The administration has also supported government financing aimed at bringing shuttered nuclear facilities back online.
Together, these projects demonstrate how the AI boom is creating new partnerships between technology companies, energy producers and the federal government to secure long-term electricity supplies.
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