The revival of nuclear power in the United States accelerates: Google signs a 25-year power purchase agreement with NextEra, reviving a nuclear power plant that has been closed for 5 years

The demand for clean energy from tech giants for artificial intelligence data centers is driving a wave of nuclear power plant restarts in the United States. Google has reached an agreement with NextEra, the largest renewable energy company in the U.S., to restart the Iowa nuclear power plant that has been closed for five years.

According to the Financial Times, NextEra will lead the restart project of the Duane Arnold Energy Center in Iowa. Google has signed a 25-year power purchase agreement to procure electricity from the plant. The nuclear power plant, with a capacity of 615 megawatts, is expected to have restart costs exceeding $1.6 billion and plans to begin supplying power in 2029.

According to NextEra's plan, the Duane Arnold plant will become the third U.S. nuclear power plant to initiate a restart process, following Palisades and Three Mile Island.

Ruth Porat, President and Chief Investment Officer of Google's parent company Alphabet, stated that this collaboration "sets a precedent for the investment needed to build energy capacity nationwide, provide reliable clean power, while protecting affordability and creating jobs."

Google stated that, in addition to the restart project, it will also explore opportunities with NextEra to deploy new nuclear power capacity in the U.S. to meet the surge in electricity demand brought about by the promotion of AI.

Dual Pressure Behind the Restart

Previously, Microsoft reached a similar agreement with Constellation Energy last year to restart the Three Mile Island nuclear power plant in Pennsylvania. The Palisades nuclear power plant in Michigan is expected to become the first fully decommissioned nuclear power plant in the U.S. to resume operations this year.

These projects point to the same driving force: the explosive demand for electricity from AI infrastructure and the dual pressure of carbon neutrality goals.

Market analysis suggests that restarting idle nuclear power plants is more cost-effective and faster than building new facilities from scratch. This explains why tech companies choose to collaborate with nuclear power companies to revive old reactors rather than waiting for the commercialization of next-generation nuclear technology.

However, critics warn that efforts to restart decommissioned nuclear power plants should not be rushed and must adhere to strict regulatory standards.

Edwin Lyman, a physicist with the Union of Concerned Scientists, stated that the restart of Duane Arnold should be "extremely cautious," especially considering that the plant was damaged during a storm.

Lyman pointed out that this aging reactor has the same design as the reactor that melted down in Fukushima in 2011 and was shut down after being hit by a derecho storm in August 2020, which destroyed its cooling tower and caused significant damage. He stated that until a "realistic cost estimate for rebuilding the plant and restoring safety is developed," no one truly knows whether the reactor can produce electricity at a reasonable price