NextEra Energy has secured up to $1.9 billion in U.S. Department of Energy financing to restart Iowa’s Duane Arnold nuclear plant, advancing a project backed by a 25-year power-purchase agreement with Google to supply electricity for the technology company’s expanding cloud and artificial-intelligence infrastructure.
The Department of Energy said Tuesday that its Office of Energy Dominance Financing reached financial close on the loan, which will help fund the return to service of the 615-megawatt Duane Arnold Energy Center in Linn County, Iowa. The plant shut down in 2020 and remains subject to regulatory approvals before it can restart.
NextEra Energy is targeting a return to operation no later than the first quarter of 2029.
Google Signs 25-Year Nuclear Power Agreement
The restart is closely connected to Google’s growing electricity requirements.
NextEra and Google announced in October 2025 a 25-year agreement under which Google will purchase electricity generated by Duane Arnold once the facility returns to service.
The 24/7 carbon-free electricity is intended to support Google’s growing cloud and AI infrastructure in Iowa. NextEra said the power-purchase agreement enables investment in restarting the facility and covers the cost of producing the electricity purchased by Google.
The companies also agreed to explore additional nuclear-generation projects elsewhere in the United States, extending their relationship beyond Duane Arnold.
AI Drives New Demand for Electricity
The project illustrates how rapidly expanding AI and data-center infrastructure is creating new demand for large volumes of continuous electricity.
Unlike intermittent generation sources, nuclear plants can provide electricity around the clock, making existing nuclear facilities increasingly relevant to technology companies seeking large-scale power supplies for data centers.
The DOE specifically said the restarted Duane Arnold plant would help support growing electricity requirements from cloud and AI infrastructure while supplying baseload power to the Midcontinent Independent System Operator grid.
Iowa Nuclear Plant Could Generate $9 Billion in Economic Benefits
NextEra said an economic study estimates that restarting Duane Arnold could generate more than $9 billion in economic benefits for Iowa over 25 years.
The project is expected to support approximately 1,500 jobs during construction and refurbishment and more than 460 permanent jobs once operating, according to the DOE.
NextEra also estimates approximately $75 million in tax revenue over the project’s operating period.
The Iowa Utilities Commission issued a certificate in June authorizing construction and operation related to the restart, while the project continues through inspections, engineering assessments and licensing procedures overseen by the U.S. Nuclear Regulatory Commission and other agencies.
The combination of Google’s long-term electricity commitment and the newly closed federal financing moves Duane Arnold closer to becoming one of the U.S. nuclear plants returning to service as electricity demand from data centers and AI infrastructure expands.
