The U.S. Department of Energy is financing the refurbishment of the Duane Arnold Energy Center to support growing electricity demand from AI data centers.
Key facts
- •The Duane Arnold Energy Center is scheduled to restart in 2029 with a total capacity of 615 megawatts.
- •The U.S. Department of Energy previously provided a $1 billion loan to Constellation Energy for the Three Mile Island project.
- •Google is reportedly considering the construction of up to six data centers in the vicinity of the Iowa plant.
- •The 50 megawatts reserved for the local cooperative would cover 18% of Iowa’s demand growth since 2021.
- •New data centers are expected to nearly triple the sector’s electricity demand by 2035.
NextEra Energy has secured a $1.9 billion loan from the U.S. Department of Energy to restart the Duane Arnold Energy Center in Iowa. The facility, which has been shuttered since 2020 following damage from a rainstorm, is expected to resume operations in 2029. The project is part of a broader trend of tech companies seeking to secure clean, firm power sources to support the electricity needs of AI data centers.
By the numbers
Refurbishment and Capacity
The Duane Arnold Energy Center ceased operations in 2020 when NextEra Energy opted to mothball the plant rather than repair storm damage, citing the low cost of natural gas at the time. Through the current refurbishment project, the facility is expected to reach a total capacity of 615 megawatts, an increase of 14 megawatts from its previous output. According to NextEra CEO John Ketchum, 50 megawatts of this capacity will be allocated to the local power cooperative.
Industry Shift Toward Nuclear Power
The rise of AI and the electrification of the economy have led to a surge in electricity demand, with the sector's needs projected to nearly triple by 2035. Tech companies are increasingly turning to shuttered nuclear plants to meet these requirements. Similar initiatives include Microsoft’s deal to restart a reactor at Three Mile Island and Meta’s agreement to purchase clean energy attributes from the Clinton Clean Energy Center in Illinois.
Timeline
- 2020The Duane Arnold Energy Center ceased operations following damage from an intense rainstorm.
- 2028The Three Mile Island reactor is scheduled to restart operations.
- 2029The Duane Arnold Energy Center is expected to restart.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch.
