NextEra secures $1.9B federal loan to restart Iowa nuclear plant for Google

Energy giant NextEra Energy has secured a federal loan of up to $1.9 billion from the Department of Energy to restart Iowa’s Duane Arnold Energy Center, marking a major milestone as the country works to meet soaring power demand driven in part by the AI boom.

The 615-megawatt facility in Linn County operated for 45 years before closing in 2020 as Iowa’s sole nuclear power plant. The project cleared a major state regulatory hurdle in June when the Iowa Utilities Commission issued a certificate authorizing construction and operation.

NextEra aims to bring the reactor back online by the first quarter of 2029, subject to final oversight and licensing approvals from the U.S. Nuclear Regulatory Commission.

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The 615-megawatt facility in Linn County operated for 45 years before closing in 2020. (Reuters/Dado Ruvic/Illustration/File Photo)

The nuclear restart is anchored by a 25-year power purchase agreement with Alphabet’s Google, which will buy electricity from the plant. Surging power demand, including from AI data centers and other high-tech computing infrastructure, is pressuring the nation’s electrical grid and prompting renewed interest in extending the lives of existing nuclear plants and bringing shuttered reactors back online.

A control panel is pictured Sept. 8, 2026, at the Duane Arnold Energy Center near Palo, Iowa. (Reuters)

The project is also expected to provide significant economic benefits for Iowa. An economic study estimates the restart will generate more than $9 billion in economic value for Iowa over 25 years; create thousands of construction and refurbishment jobs; support more than 400 permanent, high-paying operational positions; and generate approximately $75 million in tax revenue.

State leaders have backed the effort, with Iowa Gov. Kim Reynolds signing legislation to provide incentives for nuclear power development.

The nuclear restart is anchored by a 25-year power purchase agreement with Alphabet’s Google, which will buy electricity from the plant. (Rolf Vennenbernd/picture alliance via Getty Images)

NextEra Energy CEO John Ketchum said bringing new generation online to serve rising demand could help keep power affordable for existing customers while ensuring Iowa families and businesses are not asked to bear the costs of grid growth.

While multiple efforts are underway nationwide to reactivate retired reactors, no shuttered U.S. nuclear power plant has yet resumed operations.

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NextEra’s project joins other high-profile nuclear revival efforts across the country, including Constellation Energy’s plan to restart a reactor at Pennsylvania’s former Three Mile Island plant for Microsoft and Holtec International’s efforts to revive Michigan’s 800-megawatt Palisades facility.