Google’s revived nuclear power plant gets $1.9B loan from US government
Google said it would bring an Iowa nuclear power plant back from the dead. Now, the plant's owner is getting a $1.9B loan from the U.S. Energy Department.
Last October, Google announced plans to revive the Iowa nuclear power plant, the Duane Arnold Energy Center. Now, its owner, NextEra Energy, has secured a $1.9 billion loan from the U.S. Department of Energy to fund the plant's refurbishment. The substantial loan is the second such loan, indicating the Trump administration's recognition of revived nuclear power as a crucial source of electricity for tech companies needing electricity for their AI data centers.
In 2029, the plant is expected to restart, potentially reducing electricity costs, according to Deputy Secretary of Energy James Danly. However, the method to achieve this reduction remains unspecified.
Google reportedly plans to construct up to six data centers near Duane Arnold, which has been inactive since 2020 due to damage from a severe rainstorm. The company had previously considered repairing the plant, but cheap natural gas made nuclear power economically unattractive. However, recent changes in the electricity demand landscape have made nuclear power an appealing option.
With the rapid growth of AI and the increasing electrification of the economy, utilities and power providers are now seeking new sources of clean electricity. The sudden surge in demand from new data centers is projected to nearly triple the sector's electricity consumption by 2035.
The restarted nuclear power plants are becoming a popular choice for tech companies looking for clean, dependable power quickly. Microsoft recently signed an agreement with Constellation Energy to restart a reactor at Three Mile Island, which last operated in 2019. The reactor is scheduled to come back online in 2028, generating 835 megawatts.
Another Illinois facility, Constellation Energy's Clinton Clean Energy Center, was at risk of shutting down until a new customer, Meta, was found. Meta will purchase all the clean energy attributes from the 1.1 gigawatt power plant, using the certificates to offset emissions from other sources.
For instance, Meta's Hyperion AI data center will require 10 natural gas power plants to run, consuming more electricity than all of South Dakota. Duane Arnold, although smaller, will be refurbished to generate an additional 14 megawatts, bringing the total output to 615 megawatts. Together, these three power plants represent the most viable options for the U.S. power sector.
While there might be one or two more suitable plants, such as San Onofre in California, they have been inactive for longer and would require more extensive work to bring them back online.
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