NextEra Secures $1.9 Billion Loan to Restart Nuclear Plant for Google
The Department of Energy has approved a loan guarantee of up to $1.9 billion for NextEra Energy to restart Iowa's only nuclear plant, the Duane Arnold Energy Center.
Although the company and government touted the 615 megawatts of power the project would provide, the real reason for the restart is to support Google's AI data centers being built in the region.
The DAEC was shut down in October 2020 due to unfavorable economics, but demand has increased since then. Natural gas and wind power are still cheaper to produce than nuclear power, but utilities are being forced to buy electricity at higher prices to meet rising demand.
Google's $7 billion investment in Iowa includes the construction of a $576 million data center southwest of Cedar Rapids, and the company is also considering developing up to six additional AI data centers near the DAEC.