Google strikes 25-year deal to restart nuclear plant for AI data centers

Google has struck a 25-year deal with NextEra Energy to restart Iowa’s shuttered Duane Arnold Energy Center, a 615MW nuclear plant that closed in 2020, to power its AI data centers. The agreement represents a historic attempt to revive mothballed nuclear infrastructure, as the US has never successfully restarted a decommissioned nuclear plant, highlighting both the growing electricity demands of AI and the challenges of nuclear energy revival.

What you should know: Google will fund the investment needed to restart the plant and cover energy production costs when operations resume in 2029.

• The Central Iowa Power Cooperative will purchase any remaining electricity that Google doesn’t use from the facility.
• Duane Arnold first began generating power in 1975 before shutting down in 2020 due to economic pressures from cheaper gas, solar, and wind alternatives.

Why this matters: Tech companies are increasingly turning to nuclear power as AI data centers create unprecedented electricity demands that require reliable, carbon-free energy around the clock.

• Traditional renewable sources like solar and wind can’t provide the consistent baseload power that energy-intensive AI operations require.
• Nuclear energy has struggled to compete economically with falling costs of other power sources, but AI’s massive energy appetite is changing that calculus.

The big picture: Google’s move follows similar nuclear revival efforts across the tech industry as companies scramble to secure adequate power for AI expansion.

• Microsoft announced plans last year to help restart a reactor at Three Mile Island, which is scheduled to come back online in 2028.
• These projects represent the tech sector’s recognition that existing power infrastructure can’t keep pace with AI’s growing energy requirements.

Key challenges ahead: Restarting a mothballed nuclear plant presents significant technical and regulatory hurdles that have never been successfully navigated in the US.

• The complexity of bringing decades-old nuclear infrastructure back to operational standards will test engineering capabilities and regulatory frameworks.
• Google acknowledges that reviving existing plants offers “the fastest path to unlock large-scale nuclear power to meet AI growth in the near-term” compared to building new facilities.

What’s next: Google is simultaneously pursuing next-generation nuclear technology through partnerships with NextEra Energy and Kairos Power to develop advanced reactor designs.

• However, these cutting-edge nuclear technologies still face lengthy certification and permitting processes that could delay their deployment for years.
• The dual approach of reviving old plants while developing new technology reflects the urgency of securing adequate power for AI expansion.