NextEra and Google Reach Historic Agreement to Restart Iowa's Only Nuclear Power Plant for AI Power in 2029
Summary
NextEra Energy and Google announced a partnership agreement on Monday, October 27, Eastern Time, to restart the Duane Arnold Energy Center nuclear power plant near Palo, Iowa, with operations expected to resume in the first quarter of 2029. Google has signed a 25-year power purchase agreement (PPA) to buy the majority of the electricity from the approximately 615-megawatt plant to support its growing cloud and artificial intelligence infrastructure in Iowa.
The Duane Arnold Energy Center, Iowa's only nuclear power plant, closed in 2020 after 45 years of operation. This restart marks a revival of the U.S. nuclear energy industry amidst a surge in data center power demand driven by the AI boom.
Cooperation Agreement Details
Under the agreement, Google will purchase carbon-free nuclear energy from the Duane Arnold plant through a 25-year contract, while Central Iowa Power Cooperative will purchase the remaining power output from the plant under the same terms.
NextEra Energy has signed a definitive agreement to acquire the combined 30% stake in the plant held by Central Iowa Power Cooperative and Corn Belt Power Cooperative. Upon completion of the acquisition, NextEra will become the sole owner of the plant.
NextEra Energy emphasized that the restart project has undergone rigorous engineering assessments, community engagement, and close coordination with federal, state, and local government agencies. The company is working with the U.S. Nuclear Regulatory Commission (NRC) and other government bodies to ensure a safe, timely, and compliant return to operation.
Economic and Employment Impact
According to economic research reports, the project is expected to create over 1,600 construction-related jobs (including direct, indirect, and induced employment) statewide in Iowa, and approximately 400 full-time operational jobs during the plant's operation.
NextEra estimates that the restarted nuclear plant will contribute over $320 million annually to the local economy and generate an average of approximately $3 million in annual tax revenue. Overall, the project could bring more than $9 billion in economic benefits to Iowa.
Importantly, Iowa's energy customers will not bear any costs associated with Google's purchase of electricity from the facility, as Google's long-term power purchase agreement covers all production expenses.
Industry Background
This agreement follows another significant collaboration between the tech industry and nuclear energy, after Constellation Energy announced the restart of the Three Mile Island nuclear power plant in Pennsylvania to power Microsoft data centers. After years of stagnation, the nuclear energy industry is experiencing a renaissance, driven by tech giants' need to find clean energy to power their data centers, leading to a substantial increase in electricity demand.
Currently, three nuclear power plants in the U.S. are attempting to restart, but no fully closed U.S. nuclear reactor has successfully returned to operation to date. In addition to Duane Arnold, the Palisades nuclear power plant in Michigan and the Three Mile Island nuclear power plant in Pennsylvania are also slated for restart.
Future Outlook
In addition to restarting the Duane Arnold nuclear plant, the two companies have signed a separate agreement to explore further opportunities for nationwide nuclear energy deployment in the United States. NextEra Energy and Google's long-term partnership deepens further, with nearly 3 gigawatts of clean energy projects already in collaboration across the U.S., including wind, solar, and energy storage assets.
John Ketchum, Chairman and CEO of NextEra Energy, stated: "The restart of Duane Arnold marks a significant milestone for NextEra Energy. Our partnership with Google not only brings nuclear energy back to Iowa but also accelerates the development of next-generation nuclear technologies."
Ruth Porat, President and Chief Investment Officer of Google and its parent company Alphabet, said: "Building on two decades of work in Iowa, including a $7 billion investment in the state this May, Google is proud to partner with NextEra Energy to reopen the Duane Arnold Energy Center – a project that will bring nuclear energy and hundreds of new jobs to Iowa by early 2029."
This deal also signals a broader renaissance for U.S. nuclear power, as utilities and tech giants alike are re-evaluating the technology's potential to provide 24/7 carbon-free electricity amidst increasingly stringent climate goals and unprecedented data center growth.
Related Background: Google is currently constructing a data center campus southwest of Cedar Rapids, Iowa, and is considering a second potential site in an unincorporated area near Palo in Linn County. Google has been operating data centers in Council Bluffs, Iowa, since 2007.