Google and the U.S. large-scale energy infrastructure company NextEra Energy announced on Monday (October 27) that they have reached an agreement to restart a nuclear power plant in Iowa that was shut down five years ago.
With the increase in electricity consumption for artificial intelligence (AI) and data centers, nuclear energy has once again become a focal point in the United States. Experts say that nuclear power plants can sustainably provide large-scale, around-the-clock electricity with minimal carbon emissions.
The agreement between Google and NextEra Energy states that Google has signed a 25-year power purchase agreement with the Duane Arnold Energy Center near Cedar Rapids, Iowa, aiming to restore the operation of the nuclear power plant by early 2029.
In addition to the power purchase, the two companies will also collaborate on the development of new nuclear energy technologies.
The Duane Arnold Energy Center is Iowa’s only nuclear power plant, classified as a mid-sized facility capable of generating up to 615 megawatts of electricity simultaneously. The plant, which operated for 45 years, was shut down in 2020.
Following the announcement, shares of NextEra Energy rose more than 1% in after-hours trading, closing at $87.24.
Recently, the Three Mile Island nuclear power plant in Pennsylvania announced that it will supply power to a Microsoft data center. The Pennsylvania nuclear plant is currently owned by Constellation Energy, a subsidiary of Exelon Corporation based in Baltimore.
There are plans to restart operations at three nuclear power plants across the United States in Pennsylvania, Michigan, and Iowa.
In August, the U.S. government advanced its nuclear energy policy by selecting 11 companies to pilot the development of small high-tech nuclear test reactors. The goal is to have at least 3 of them operational within a year. Developers claim that these small modular reactors, where components can be mass-produced in factories, will have lower construction costs per megawatt output compared to current large reactors.
Large cloud computing companies such as Google, Microsoft, and Amazon have all agreed to purchase electricity generated from advanced nuclear energy technologies, including nuclear fusion and small modular reactors.
Ruth Porat, President and Chief Investment Officer of Alphabet and Google, stated, “This partnership provides a model for energy investments needed nationwide to enhance energy supply capabilities, ensure reliable and clean power, while addressing economic affordability and promoting employment opportunities for AI development.”
NextEra Energy noted that minority shareholders of the nuclear power plant, Central Iowa Power Cooperative, will purchase the remaining electricity under the same terms as Google.
(This article references reports from Reuters and Bloomberg.)