DOE finalizes $1.9B loan for Iowa nuclear plant restart

The U.S. Department of Energy has finalized a loan of up to $1.9 billion to NextEra Energy to fund the restart of the Duane Arnold Energy Center, a shuttered nuclear power plant in Iowa. The facility, which ceased operations in 2020, is slated to come back online by early 2029, primarily to supply electricity to Google's data centers. This initiative is part of a broader effort to revive decommissioned nuclear reactors, often referred to as "zombie" plants, to meet escalating energy demands, particularly from artificial intelligence infrastructure. The Duane Arnold Energy Center, located near Palo, Iowa, was originally scheduled for decommissioning in October 2020. However, a severe storm in August 2020 damaged its cooling towers, accelerating its closure. The plant, which had operated for 45 years, is a 615-megawatt facility. Under a 25-year power purchase agreement, Google will acquire approximately 70% of the plant's output to power its AI data centers, while the Central Iowa Power Cooperative will purchase the remaining 30%. Officials stated that the loan aims to restore American nuclear leadership and strengthen energy security by providing affordable, reliable power.