NextEra and Google's Nuclear Energy Move

NextEra Energy and Google Restarting Duane Arnold Energy Center in Iowa

NextEra Energy, Inc. (NYSE: NEE) and Google announced a historic agreement to restart the Duane Arnold Energy Center, Iowa's only nuclear facility. This facility is seen as a significant step in meeting the increased electricity demand in the U.S. driven by artificial intelligence (AI) and data center growth. The 615-megawatt facility, located near Cedar Rapids, is planned to be fully operational by the first quarter of 2029, pending regulatory approval.

Under a 25-year agreement, Google will purchase a significant portion of the facility's output as a 24/7 carbon-free energy source. The remaining capacity will be acquired under similar terms by Central Iowa Power Cooperative (CIPCO). NextEra Energy will assume full ownership of the facility by acquiring a total of 30% stake from CIPCO and Corn Belt Power Cooperative.

The reopening of Duane Arnold, which was closed after nearly five decades of operation in 2020, symbolizes a significant resurgence of nuclear production in Iowa and highlights the growing integration between Big Tech and clean energy sources. NextEra stated that the project would create approximately 400 permanent jobs in Iowa and provide over $9 billion in total economic benefits, including $3 million in new annual tax revenue.

John Ketchum, CEO of NextEra, emphasized, “This partnership is not only bringing nuclear energy back to Iowa but also accelerating the development of next-generation nuclear technology,” underscoring the collaboration's role in strengthening U.S. grid reliability and advancing national energy independence.

Google has invested over $7 billion in Iowa since 2007 and considers this agreement essential for its AI-driven growth strategy. Ruth Porat, President and CFO of Alphabet and Google, characterized the reopening of Duane Arnold as providing reliable, clean energy and creating hundreds of new jobs in the Hawkeye State, describing it as a model for similar clean energy investments nationwide.

The companies also announced a strategic agreement to develop new nuclear energy projects nationwide, positioning nuclear power as a cornerstone of the AI and data economy. Nuclear energy is standing out in an environment where concerns are rising over quickly escalating electricity demand expected to increase by 2035, outpacing renewable resources and grid expansion.

Iowa officials consider this move a significant milestone in the state's energy evolution. Governor Kim Reynolds praised the project as “a combination of nuclear and AI innovation that triggers economic growth, empowers communities, and maintains America's competitiveness.”

Economic studies forecast that the reopening will create over 1,600 jobs during the construction process and will generate $340 million in annual revenue statewide once the facility is operational. In Linn County, where the project is located, it will sustain 400 high-paying, full-time positions and generate $127 million in local earnings in the long term.

The reopening of Duane Arnold is occurring after comprehensive engineering evaluations and coordination with the Nuclear Regulatory Commission. NextEra Energy stressed that the reopening will not create cost increases for consumers in Iowa because Google's long-term power purchase agreement will cover all production costs.

This announcement further deepens the ongoing energy partnerships between NextEra and Google, which include over 3 gigawatts of clean energy projects such as wind, solar, and battery initiatives across the U.S. The agreement marks a broader renewal of U.S. nuclear power as both utilities and tech giants reassess the potential of providing 24/7 carbon-free energy in light of tightening climate goals and unique data center growth.