US awards $1.9B loan to restart Iowa nuclear plant for Google data centers

September 8, 2026 at 08:25 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The U.S. Department of Energy has granted a $1.9 billion loan to NextEra Energy to refurbish the Duane Arnold Energy Center in Iowa. The plant, shut since 2020, is slated to restart in 2029 and will supply power to Google data centers. The loan is the second federal financing for a revived nuclear plant, following $1 billion for Three Mile Island last year.

Key Facts

NextEra Energy received a $1.9 billion loan from the U.S. Department of Energy to refurbish the Duane Arnold Energy Center in Iowa.
The Duane Arnold plant has been shut since 2020, when an intense rainstorm damaged it.
The plant is scheduled to restart in 2029, according to Deputy Secretary of Energy James Danly.
Google is reportedly planning up to six data centers near the Duane Arnold Energy Center.
Only 50 megawatts of the plant's capacity will be set aside for the local power cooperative, NextEra CEO John Ketchum said.

Loan and Restart

The U.S. Department of Energy granted a $1.9 billion loan to NextEra Energy for the Duane Arnold Energy Center refurbishment. The plant has not operated since 2020, when an intense rainstorm caused damage. Deputy Secretary of Energy James Danly said the restart in 2029 will "drive down electricity costs." The loan is the second of its kind, following $1 billion extended to Constellation Energy last year for Three Mile Island.

Google Data Center Demand

Google is reportedly looking to build up to six data centers near the Duane Arnold Energy Center. NextEra CEO John Ketchum said during an earnings call last year that just 50 megawatts will be set aside for the local power cooperative. That capacity would cover 18% of Iowa's demand growth since 2021, the year before ChatGPT was released. New data centers are expected to nearly triple the sector's electricity demand by 2035.

Nuclear Revival Trend

Microsoft signed a deal with Constellation Energy two years ago to restart a reactor at Three Mile Island that last operated in 2019. That reactor is scheduled to restart in 2028 and generate 835 megawatts. Meta is buying all clean energy attributes from Constellation Energy's Clinton Clean Energy Center in Illinois, a 1.1 gigawatt plant. Meta's Hyperion AI data center will need 10 natural gas power plants to operate and will consume more electricity than all of South Dakota if completed.