Google, NextEra revive major Iowa nuclear facility as AI energy demand surges

Google and American electrical utility giant NextEra Energy announced a partnership Monday to revive Iowa’s only nuclear power plant to meet growing low-carbon energy demand from artificial intelligence

The Duane Arnold Energy Center, which closed in 2020, could begin operating in early 2029, pending regulatory approval.

“Once operational, Google will purchase power from the 615-MW plant as a 24/7 carbon-free energy source to help power Google’s growing cloud and AI infrastructure in Iowa, while also strengthening local grid reliability,” the companies said in a press release.  

The Central Iowa Power Cooperative, the state’s largest energy provider, has agreed to buy surplus electricity leftover by Google.

The Duane Arnold Energy Center’s prior shutdown had come at a time when the nuclear sector was struggling to compete with natural gas and other renewable energy sources due to high operating costs and public perception challenges around safety.

However, the nuclear site’s revival marks a trend, as energy demand in the U.S. has been surging, with tech companies like Google investing billions in developing power-hungry AI data centers. 

According to the U.S. Energy Information Administration, total annual electricity consumption stateside hit a record high in 2024 — a ceiling that could continue to rise if data centers continue to expand at their current pace.

In the face of rising energy demands, Washington and the tech industry have been pushing nuclear energy as a potential way to address growing concerns about AI computing’s impacts on local energy grids.  

The Iowa project follows similar nuclear partnerships, including one between Constellation Energy and Microsoft. Meanwhile, computer giant Oracle recently said it is designing a data center powered by three small nuclear reactors.

In addition to bringing more energy online, nuclear energy provides a potential pathway for Big Tech to continue their data center rollout while also curbing carbon emissions. 

“[The Google-NextEra partnership] serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy,” Ruth Porat, president and chief investment officer of Alphabet and Google, said.

Media outlets had taken note when Google, in June, had quietly removed its commitment to achieving net-zero carbon emissions by 2030 from the main page of its corporate sustainability website amid expansion of its AI plans. 

Data center projects across the U.S. have also faced growing public pushback. In September, Google withdrew plans for a new data center in Indiana after community groups raised concerns about resource use and environmental impacts, local media reported. 

On the other hand, Iowa has so far proved receptive to such projects, with Google having invested more than $6.8 billion into data centers in the state. Iowa lawmakers have praised the latest project in the joint release, saying it will support local jobs and energy grids.

“Bringing Duane Arnold back online is a big win for Linn County and the entire state of Iowa,” State Senator Charlie McClintock said, adding that the announcement shows Iowa can “keep the lights” on for residents and businesses.