NextEra Energy Secures $1.9 Billion Loan Guarantee to Restart Iowa's Duane Arnold Nuclear Plant
NextEra Energy has secured a $1.9 billion loan guarantee from the U.S. Department of Energy (DOE) to restart the shuttered Duane Arnold Energy Center (DAEC), Iowa’s only nuclear plant, which was closed in October 2020 due to unfavorable economics and an emergency shutdown caused by severe weather. The DOE states that restarting DAEC will provide reliable baseload power, reduce electricity costs, and support jobs. However, the primary driver behind NextEra's decision is not publicly emphasized: Google’s need for additional energy to fuel its AI data centers in Iowa. In 2025, Alphabet announced a $7 billion investment in expanding its data center footprint there. NextEra will now own DAEC outright after acquiring shares from two former co-owners and has signed agreements allowing CIPCO access to power on the same terms as Google’s long-term purchase agreement. The plant is expected to supply 615 megawatts of electricity, with a significant portion likely directed toward powering Alphabet's new data centers.
Topics: Energy Government Funding Infrastructure Investment Nuclear Power