NextEra and Google are reopening the Iowa Nuclear Energy Station.

NextEra Energy and Google have reached an agreement to reopen the Iowa nuclear power plant that was closed five years ago. This indicates that interest in nuclear energy in the U.S. is reviving due to the increasing electricity demand from the technology sector.

The significant amount of electricity required for artificial intelligence processing in the technology industry has increased interest in the country’s nuclear reactors. Nuclear power plants have great potential for providing nearly carbon-free continuous energy.

With the agreement between NextEra and Google, the Duane Arnold Energy Center will resume operations near Cedar Rapids in early 2029. The agreement is supported by a 25-year contract under which Google will purchase electricity from the 615-megawatt capacity plant.

Following the transaction, NextEra Energy shares rose by more than 1%, reaching $87.24.

This agreement follows a similar announcement regarding the former Three Mile Island nuclear power plant in Pennsylvania, which is planned to be brought back into operation to power Microsoft data centers.

Google, Microsoft, Amazon, and other major cloud service providers have signed agreements for future energy purchases derived from advanced nuclear technologies such as fusion and small modular reactors in recent months.

NextEra and Google also stated that they would explore the development of new nuclear technologies.

NextEra Energy CEO John Ketchum said, “The reopening of Duane Arnold is a significant milestone for NextEra Energy. Our partnership with Google not only brings nuclear power back to Iowa, but also accelerates the development of next-generation nuclear technologies.”

The Duane Arnold Energy Center is Iowa's only nuclear plant, which was closed in 2020 after 45 years of operation. Currently, there are efforts underway to restart three nuclear plants in the U.S., including one in Michigan. However, none of the closed nuclear plants have been reopened to date.

Alphabet and Google Vice President and Chief Investment Officer Ruth Porat emphasized, “This partnership serves as a model for the investments needed to increase energy capacity nationwide and provide reliable, clean energy. At the same time, it creates jobs that support an AI-driven economy while keeping prices affordable.”

One of the minority partners of the plant, Central Iowa Power Cooperative, will purchase the remaining energy production of the plant under the same terms as Google. NextEra also announced that it has acquired a 30% stake in the Duane Arnold plant from this cooperative, increasing its ownership to 100%.