PALO, IOWA — A federal loan of up to $1.9 billion has pushed Iowa’s only nuclear power plant substantially closer to a planned 2029 restart, with much of its electricity expected to support Google’s rapidly growing cloud and artificial-intelligence operations in the state.
The U.S. Department of Energy and NextEra Energy announced September 8 that they had reached financial close on the loan supporting the restart of the Duane Arnold Energy Center in Linn County.
The 615-megawatt plant could produce enough electricity to match the consumption of nearly 500,000 homes, according to the Energy Department. Duane Arnold stopped producing power in 2020 after operating for more than four decades.
NextEra is targeting a return to service no later than the first quarter of 2029, although the company must first complete an extensive licensing and regulatory process overseen by the U.S. Nuclear Regulatory Commission.
The Iowa Utilities Commission issued a certificate in June authorizing construction and operation of the facility, but that state action does not replace the required federal nuclear approvals.
NextEra said inspections, engineering evaluations, employee training, emergency planning and other preparations are underway. The company is also coordinating with Linn County Emergency Management and the Iowa Department of Health and Human Services.
Google has signed a 25-year agreement to purchase power from Duane Arnold as a round-the-clock carbon-free energy source for its Iowa cloud and artificial-intelligence infrastructure. Central Iowa Power Cooperative is expected to purchase the plant’s remaining output under similar terms.
NextEra said the Google agreement covers the cost of producing the electricity the company purchases and that Iowa energy customers will not be responsible for those costs.
The federal government’s $1.9 billion commitment provides financing for one of the largest nuclear restart projects underway in the United States. The Energy Department said returning Duane Arnold to service would strengthen the regional electrical grid while helping meet rapidly growing power demand.
That demand — much of it tied to data centers and other large industrial projects — has become a major concern across Iowa.
NorthIowaToday.com recently reported that an Iowa nuclear task force called for a statewide search for possible reactor sites, expanded workforce training, financial incentives and the creation of “nuclear-ready” communities.
The task force identified Duane Arnold’s proposed restart as Iowa’s most immediate nuclear-energy development. Iowa currently produces no electricity from nuclear power.
The Energy Department projects the restart will create nearly 1,500 jobs during construction and support more than 450 jobs once the plant is operating.
NextEra cited an economic study estimating that the project could generate more than $9 billion in economic benefits for Iowa over 25 years, support more than 400 permanent jobs and produce approximately $75 million in tax revenue over the life of the project. Those figures remain projections supplied by the company and its cited study.
Duane Arnold also has a long history of supplying power to Iowa utilities. In 2013, NIT reported that Interstate Power and Light signed an 11-year agreement to purchase electricity from the plant as part of the utility’s long-term energy plan.
The Energy Department described the new loan as part of the Trump administration’s broader effort to restart closed reactors, increase production from existing nuclear plants and encourage construction of additional generating capacity.
Federal officials contend that returning 615 megawatts of continuous generation to the regional grid will improve reliability and help restrain electricity costs. The actual effect on customer bills will depend on future power demand, transmission expenses, market prices and other factors.
Despite the completed financing, Duane Arnold cannot resume operations until the Nuclear Regulatory Commission determines that the plant satisfies federal safety, security and licensing requirements.