Google-Backed Nuclear Revival Secures $1.9B Federal Loan Amid AI Energy Push

In a significant move underscoring the U.S. government's support for nuclear energy as a solution to AI-driven power demands, Google's initiative to revive an Iowa nuclear power plant has taken a major step forward. The facility's owner, NextEra Energy, has secured a $1.9 billion loan from the U.S. Department of Energy (DOE) to finance the refurbishment of the Duane Arnold Energy Center. This loan marks the second of its kind, signaling a clear policy direction from the Trump administration to back nuclear power as a reliable electricity source for tech companies expanding their AI data centers. In a similar vein, the DOE previously allocated a $1 billion loan to Constellation Energy in November 2025 to restart a reactor at Three Mile Island, a project that benefits Microsoft. Deputy Secretary of Energy James Danly stated that the restart of the Iowa plant in 2029 will "drive down electricity costs," though he provided no detailed explanation. During an earnings call last year, NextEra CEO John Ketchum noted that only 50 megawatts would be reserved for the local power cooperative—enough to meet 18% of Iowa's electricity demand growth since 2021, the year before ChatGPT revolutionized the AI landscape. Google is reportedly considering the construction of up to six data centers near the Duane Arnold site, which has been inactive since 2020 when a severe rainstorm caused significant damage. Initially, NextEra chose to mothball the facility due to an oversupply of cheap natural gas that made nuclear power economically unattractive. However, the energy landscape has shifted dramatically over the past six years. The sudden surge in electricity demand from AI, combined with broader electrification trends, has left utilities scrambling for new sources of power. Projections indicate that data center electricity consumption could nearly triple by 2035, making previously shuttered nuclear plants increasingly appealing as a source of clean, firm power. Other tech giants are pursuing similar strategies. Microsoft partnered with Constellation Energy in 2024 to restart a reactor at Three Mile Island, with operations expected to resume in 2028, generating 835 megawatts. Meanwhile, Meta has secured a deal to purchase all clean energy attributes from Constellation's Clinton Clean Energy Center in Illinois, preventing its closure. That 1.1-gigawatt facility will supply power to the local grid, while Meta uses renewable energy certificates to offset emissions from operations like its proposed Hyperion AI data center, which could rival the electricity consumption of South Dakota. Although smaller in scale, the Duane Arnold refurbishment will add 14 megawatts to its existing capacity, bringing the total to 615 megawatts. These three projects represent the most viable opportunities for reviving nuclear power in the U.S., offering a pragmatic path toward meeting the growing energy needs of the digital era while supporting decarbonization goals.

via TechCrunch