Google gains a dedicated source of nuclear electricity for its AI data centers after the US Department of Energy approved a $1.9 billion loan to NextEra Energy to restart the Duane Arnold Energy Center in Linn County, Iowa. The deal commits plant output to Google and is meant to strengthen local grid reliability while reviving a mothballed reactor.
The Duane Arnold unit is a 615-megawatt plant that was taken out of service after a severe storm damaged its cooling towers on August 10, 2020, when gusts reached up to 140 mph. The facility had been headed for decommissioning, but renewed demand for data center power prompted NextEra to pursue restarting generation, with the operator planning to resume production by 2029.
NextEra has said the project will create "thousands" of direct and indirect jobs. The loan is part of a broader DOE push to restart multiple mothballed plants to supply both the grid and energy-hungry AI installations. For companies running large compute loads, access to predictable, low-emission baseload power is increasingly important.
Google has pledged to match its power use with renewable sources and reached that goal in 2018, though the company has more recently contracted with a natural gas plant for one Texas data center. Other major data center operators have also relied on fossil-heavy grids or onsite gas generators. Nuclear power offers relatively low carbon emissions in operation, though it raises separate issues around radioactive waste and high capital costs.
While the DOE loan clears a major financial hurdle, industry observers note that $1.9 billion is modest by nuclear project standards and significant work remains before reactors return to service. The next steps will include the operator’s detailed restart plans, construction and regulatory approvals, and the timeline through to the planned 2029 restart.
