Google & NextEra: Reviving Nuclear Energy to Power AI

As technology companies face the mounting challenge of securing reliable power supplies from AI systems demanding more electricity than traditional computing workloads, a rethink of energy strategy is rolling out across the sector.

Now, nuclear power is emerging as an unlikely solution.

One of the firsts to take the leap, Google and NextEra Energy Resources have announced plans to restart the Duane Arnold Energy Centre in Iowa – marking one of the industry’s most significant moves yet to address this power crunch. 

The benefits of the Duane Arnold Energy Centre in Iowa

The 615-megawatt nuclear facility near Cedar Rapids shut down in 2020 but will return to service in the first quarter of 2029 under a 25-year power purchase agreement.

NextEra Energy Resources, a major US power generation company, is acquiring full ownership of the facility and will coordinate its restart.

Google purchases the majority of Duane Arnold’s output, while Central Iowa Power Cooperative buys the remaining portion under identical terms.

The arrangement gets at the heart of a problem that’s putting pressure on energy executives: AI infrastructure needs continuous power that wind and solar cannot provide on their own. 

Data centres housing the servers that train AI models operate around the clock, creating relentless demand for baseload power sources that generate electricity regardless of weather conditions.

“AI is forcing an honest conversation about clean energy,” says Robert Little, gTech Sustainability Strategy Lead at Google. 

“AI and cloud infrastructure need massive, reliable, clean power. Not just when the sun shines or the wind blows, but 24/7.”

Why NextEra acquires full ownership as Google shoulders financial responsibility

NextEra Energy is acquiring the combined 30% stake held by Central Iowa Power Cooperative and Corn Belt Power Cooperative, bringing its ownership to 100%. 

The power purchase agreement enables the investment required to restart operations, with Google bearing the financial responsibility for its portion. 

As a result, Iowa electricity customers won’t bear costs associated with Google’s purchases from the facility, according to NextEra Energy.

The economics paint an appealing picture for Iowa. An economic study projects the restart generates more than US$9bn in economic benefits to the state, with construction creating over 1,600 jobs. 

Once operational, 400 direct full-time positions will be established, primarily in Linn County. 

The plant projects more than US$340m in annual economic output state-wide, with local tax revenue averaging US$3m annually.

Kate Brandt, Chief Sustainability Officer (CSO) at Google, frames the restart as pragmatic recycling: “What if there was a fast path to unlock more carbon-free energy using infrastructure that’s already built? This is a powerful example of a circular economy in action.”

Additionally, Robert notes that when operational, the plant previously supplied approximately 20% of Iowa’s electricity, underscoring its significance to regional grid reliability.

Google and NextEra: Exploring broader nuclear ambitions

Beyond Duane Arnold, Google and NextEra sign a separate agreement to explore deploying new nuclear generation facilities across the US. 

The strategy balances existing infrastructure with development of advanced reactor technologies, including small modular reactors that can be manufactured in factories and assembled on site.

“Nuclear is a big piece of the solution as we work toward powering Google’s operations with clean energy every hour of every day,” says Michael Terrell, Head of Advanced Energy at Google.

“We’re aiming to both lower the costs of future advanced nuclear technologies like Kairos Power’s small modular reactors and tap into existing nuclear infrastructure that can unleash huge amounts of clean power to meet growing energy needs even sooner.”

The announcement is NextEra Energy’s third gigawatt of energy projects with Google nationwide. 

NextEra Energy is coordinating with the Nuclear Regulatory Commission to ensure compliance with safety standards, having conducted engineering evaluations and community engagement before announcing the restart plans.

The first quarter of 2029 target date positions Duane Arnold among the first nuclear restart projects aimed specifically at serving data centre loads, a distinction that places it at the forefront of what appears to be a broader industry shift.

John Ketchum, Chairman and CEO of NextEra Energy, says: “Google and NextEra Energy are answering the call of America’s golden age of power demand, creating thousands of jobs, strengthening Iowa’s economy, delivering long-term value to our shareholders and helping power America’s future through innovation and technology.”