Google nuclear power partner secures $1.9B loan

Google is advancing its nuclear energy strategy after plant owner NextEra Energy received a $1.9 billion loan from the U.S. Department of Energy. The funds will finance the refurbishment of the Duane Arnold Energy Center in Iowa, which Google announced last October it would help bring back into operation.

Google reportedly plans to build up to six data centers near the site to support its artificial intelligence infrastructure. Duane Arnold has been shut down since an intense rainstorm damaged the facility in 2020. Refurbishment will add 14 megawatts of capacity, bringing the plant's total output to 615 megawatts when it restarts in 2029.

James Danly, Deputy Secretary of Energy, said the 2029 restart will drive down electricity costs. NextEra CEO John Ketchum previously stated during an earnings call that 50 megawatts will go to the local power cooperative. That portion alone would cover 18% of Iowa's electricity demand growth since 2021.

Tech companies are turning to retired nuclear plants as new data centers are expected to nearly triple the sector's power demand by 2035. The Department of Energy previously provided a $1 billion loan to Constellation Energy to revive an 835-megawatt reactor at Three Mile Island for Microsoft by 2028.