US power utility NextEra Energy has secured a $1.9bn federal loan from the Department of Energy (DOE) to fund the revival of the Duane Arnold Energy Center in Palo, Iowa. The project reflects a major intersection of federal energy policy and the rising power demands of artificial intelligence.
The single-unit boiling water reactor (BWR) will add 615 MWe of emissions-free power to the regional grid. NextEra expects to return the facility to service by the first quarter of 2029, pending standard licensing reviews by the Nuclear Regulatory Commission (NRC).
“Restarting Duane Arnold is about delivering new power to meet new demand while generating billions of dollars in economic value for Iowans,” said NextEra Energy Chairman, President & CEO John Ketchum. “Just as importantly, it shows how America can support rapid economic growth and rising electricity demand while helping keep power affordable for existing customers. By bringing new generation online to serve new demand, we can strengthen the grid, create hundreds of good-paying jobs and help ensure Iowa families and businesses are not asked to bear the costs of growth.”
The financial viability of the restart is supported by a 25-year power purchase agreement signed by Alphabet’s Google to match the energy needs of its expanding cloud and AI data centres in the region. The state of Iowa anticipates over $9bn in economic benefits over 25 years, creating some 1,500 construction jobs and 400 permanent operational roles.
Duane Arnold originally closed in 2020 after sustaining storm damage although it had been licensed to operate until 2034. In October 2025, NextEra announced plans to restart the plant by early 2029, pending regulatory approvals, underpinned by the agreement with Google. In June, the Iowa Utilities Commission issued a certificate authorising the construction and operation of the plant.
NextEra is pursuing the restart under a comprehensive regulatory, operational readiness and licensing process, carrying out extensive inspections, engineering evaluations and readiness activities under the oversight of NRC and other federal, state and local agencies.
The restart is part of an unprecedented push to revive retired nuclear infrastructure across the US. It joins two other major ongoing revival projects. Constellation Energy is restarting unit 1 (835 MWe pressurised water reactor – PWR) at the Three Mile Island NPP (now renamed Crane Clean Energy Center) in Pennsylvania, backed by a major power deal with Microsoft. Holtec International is working to bring back online its 800 MWe PWR at the Palisades NPP in Michigan with federal financing support.
