Google signs deal with NextEra to reopen nuclear plant

NextEra Energy has revealed that it intends to reopen the Duane Arnold Energy Center located in Palo, Iowa, US.

The utility has also announced the signing of a 615MW power purchase agreement with Google to help power the tech giant’s growing cloud and AI infrastructure in Iowa.

According to NextEra, the PPA with Google will provide the investment to restart the plant, as well as cover costs for the production of energy from the Duane Arnold.

The remaining portion of the power generated by the plant will be purchased by one of the plant's current minority owners, Central Iowa Power Cooperative (CIPCO).

Duane Arnold began operating in 1974. It operated a 1,912MWt GE Type 4 Boiling Water Reactor before being shut down in August 2020, after a land-based hurricane damaged portions of the plant including the cooling towers.

Now NextEra is holding public meetings with various stakeholders concerning the resumption of operations, conducting inspections and ensuring necessary licenses and approvals are in place to reopen the plant.

Both Google and NextEra view this collaboration as part of a broader strategic focus on growing the nuclear sector in the US.

Currently, NextEra Energy has nearly 3GW of energy projects executed with Google across the country. The partners also recently signed another agreement to explore the development of new nuclear generation to power America’s growing electricity needs.     

John Ketchum, chairman and chief executive of NextEra Energy, said the partnership with Google "not only brings nuclear energy back to Iowa — it also accelerates the development of next-generation nuclear technology”.

He added that besides providing a reliable power source, bringing the Duane Arnold back to life will drive economic development in the region, explaining that across Iowa, more than 1,600 direct, indirect and induced jobs will be created during the plant’s resumption and more than $340 million will be generated in annual economic output during operations.

Have you read?
US Data centre boom drives energy investments focused on resilience
Germany’s nuclear u-turn and its continental ripple effects

More specifically, this is considered a big win for Linn Country suggests State Senator Charlie McClintock, who represents Iowa’s 42nd district. "Kids would watch their parents work at the plant and then grow up and work there themselves. Now, we're bringing back multigenerational local jobs. This announcement shows that Iowa can support all forms of energy, and we can keep the lights on for our residents' homes and local businesses, as well as the companies that we welcome to the Hawkeye State."

Ruth Porat, president and chief investment officer of Alphabet and Google, echoed this sentiment, emphasising the hundreds of job opportunities this project will create.

“Google is proud to partner with NextEra Energy to reopen the Duane Arnold Energy Center – a project that will deliver nuclear energy and hundreds of new job opportunities in the Hawkeye State by the beginning of 2029.

“This 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.” 

Who exactly was Duane Arnold?

If, like us, you wondered about the origin of the name of the nuclear energy centre, then wonder no more.

The energy centre was named after Duane Arnold who grew up in Sanborn, Iowa. Arnold was educated at Grinnell College and joined the Iowa Electric Light and Power Company in 1946. 

He oversaw the construction and opening of the Duane Arnold plant in 1974 and became chairman of the board and CEO of Iowa Electric Light and Power Company before he passed away in 1983, at the age of 65.

Arnold was a strong proponent of nuclear energy despite the negative sentiment it garnered at the time, especially after the Three Mile Island partial nuclear meltdown that occurred in 1979.

However, US-based energy provider Constellation last year announced a 20-year PPA with Microsoft that will pave the way for the restart of the 835MW nuclear unit at Three Mile Island.

Growing focus on nuclear in the US

The Energy Information Administration projects US electricity demand to grow at an annual rate of just over 2% in 2025 and 2026, driven by the needs of AI and data centres, manufacturing and greater electrification.

To meet this increasing demand, the sector is looking to nuclear power, evidenced by a number of announcements made this year.

First up, in March, some of the world's most influential tech companies as well as large energy users pledged to support the goal of tripling nuclear energy capacity by 2050.

The pioneering commitment was made by the likes of Google. Amazon, Meta, Dow, Occidental, Allseas, OSGE, and IHI.

The pledge, facilitated by the World Nuclear Association, highlights the critical role of nuclear power beyond traditional grid electricity, to support electrification and provide a stable source of industrial process heat.

Another announcement was made by nuclear project developer and independent power producer Elementl Power. The firm signed a strategic agreement with Google in May this year to pre-position three project sites for advanced nuclear energy.

As part of the agreement, Google will commit early-stage development capital to advance the development of three projects.

Each project would generate at least 600MW of power capacity, with the option for commercial off-take once complete. 

Also, in May this year, the New Jersey Board of Public Utilities released a Request for Information (RFI) to explore the opportunity to develop new nuclear energy resources to advance the state’s resource adequacy.

New Jersey and the larger PJM Interconnection region face increases in electricity demand as a result of load growth from AI data centres, new manufacturing facilities, and other energy intensive industries.

According to the PJM 2025 Long-Term Load Forecast, electricity demand within the region is expected to significantly increase, with a projected growth of nearly 40% in the next 14 years.

To learn more about the role of nuclear energy in Europe, including new technologies like SMRs, join Enlit Europe in Bilbao, taking place 18-20 November for dedicated sessions such as: The New Clear Alternative?