Google Agrees to Buy Power From Closed Nuclear Plant in Iowa

The first fuel bundle at the Duana Arnold Energy Center is lowered into its slot in the nuclear reactor Feb. 27, 1974. (US Dept. of Energy)

Key Points

• Google will purchase power from a nuclear plant in Iowa, previously closed in 2020, to supply its data centers.
• The Duane Arnold nuclear plant, majority-owned by NextEra Energy, is expected to reopen in 2029, pending approvals.
• Two other shuttered nuclear reactors, including one at Three Mile Island, are also being reinstated due to demand for clean electricity.

Google has agreed to buy power from a shuttered nuclear plant in Iowa to help power its data centers, the latest in a trend of defunct reactors that are coming back to life.

The reactor is majority-owned by NextEra Energy , a Florida-based utility and renewable energy developer. NextEra shares rose 2.7% in after-hours trading.

Duane Arnold closed in 2020 after operating for 45 years, primarily because of economic reasons. It was also damaged in a storm that accelerated the closing date. Under the Google deal, it’s expected to reopen in 2029, assuming it receives the necessary approvals.

Google has agreed to buy a majority of the power for 25 years. The rest of the reactor’s power capacity will be purchased by a not-for-profit electricity cooperative. The companies did not say how much of the plant’s 615-megawatt capacity Google will be using, or release financial details.

Two other shuttered nuclear reactors are also being reinstated in other parts of the country because of surging demand for clean, reliable electricity from utilities and owners of AI data centers. One is in Michigan and the other is at Three Mile Island in Pennsylvania, whose power will be purchased by Microsoft .

Write to Avi Salzman at avi.salzman@barrons.com