Rising energy demands from the technology sector could breathe new life into Iowa’s dormant Duane Arnold nuclear facility, as utility giant NextEra Energy (NYSE: NEE) explores restarting the plant.
The 601-megawatt facility, which powered down in 2020 near Cedar Rapids, has caught the attention of data center operators searching for reliable energy sources. During NextEra’s latest earnings discussion, CEO John Ketchum cited the plant’s boiling water reactor technology as a potential advantage for cost-effective recommissioning.
Big tech has been leading a revival in nuclear power demand. Microsoft (Nasdaq: MSFT) recently pioneered this trend by agreeing to purchase the entire output of a revitalized Three Mile Island facility for two decades. Other tech leaders have followed suit: Amazon (Nasdaq: AMZN) has committed to multiple small modular reactor (SMR) projects, Google, owned by Alphabet (Nasdaq: GOOGL) secured a 500-megawatt deal with Kairos Power, and data center operator Equinix (Nasdaq: EQIX) plans to purchase 500 megawatts from nuclear startup Oklo.
Sponsored · Canadian Copper Inc.
Ketchum highlighted Duane Arnold’s strategic value as one of only two merchant nuclear plants west of the Mississippi. He noted that while newer nuclear technologies like SMRs aren’t expected to be commercially viable until the late 2030s, the existing facility could be recommissioned sooner.
The surge in power requirements, driven largely by artificial intelligence operations, extends beyond tech companies. Ketchum observed that manufacturers and other industries are increasingly competing for reliable, cost-effective power sources, creating what he termed a “rising tide” effect on energy markets.
NextEra has not yet disclosed the estimated costs for reviving the facility, as the evaluation remains in the early stages.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
