Iowa Nuclear Plant to Restart Amid AI Data Center Demand

The Duane Arnold nuclear plant in Iowa is planning to restart operations by the end of the decade after shutting down in 2020. The plant, owned by NextEra Energy, aims to win a power purchase agreement with tech companies to fuel data centers. Restarting the plant would bring back 600 megawatts of electricity, equivalent to the needs of over 400,000 homes. NextEra sees this as a unique opportunity to capitalize on growing demand for nuclear power in the US.

NextEra Energy has received approval from the Federal Energy Regulatory Commission (FERC) to restart the Duane Arnold nuclear power plant in Iowa. The plant, which was shut down in 2020 due to challenging economic conditions, is set to resume operations by the end of 2029. This decision comes amidst growing demand for nuclear power in the United States, driven by the expansion of data centers and AI technologies [1].

Duane Arnold, a 600-MW single-unit power plant near Cedar Rapids, Iowa, was decommissioned in 2020. NextEra Energy, which owns about 70% of the plant, plans to use the interconnection for solar farms. However, the company needs a waiver from the Midcontinent Independent System Operator (MISO) to consolidate solar interconnection agreements at Duane Arnold with a remaining interconnection agreement for the nuclear power plant [1].

The FERC approved the waiver request, allowing NextEra to use MISO’s generator replacement process. This process will enable the company to bring Duane Arnold back online by the end of 2029, even though the plant would not meet the October 29, 2026, deadline for solar farms to reach commercial operation [1].

NextEra expects to spend between $50 million and $100 million this year to recommission the plant. The company is also in talks with potential customers who could buy the output from a restarted Duane Arnold. John Ketchum, NextEra chairman, president, and CEO, stated during a July 23 earnings conference call that the company is exploring opportunities to sell power to tech companies fueling data centers [1].

The decision to restart Duane Arnold aligns with broader trends in the nuclear power industry. In July 2025, the Nuclear Regulatory Commission (NRC) approved major licensing actions for two other U.S. nuclear projects, including the restart of the 800 MW Palisades nuclear plant in Michigan and a 20-year license extension for the 1.3 GW Perry Nuclear Power Plant in Ohio [2].

The restart of Duane Arnold is part of a larger trend towards nuclear power in the United States. In May 2025, President Donald Trump signed executive orders directing the U.S. Nuclear Regulatory Commission to reduce regulations and expedite new licenses for reactors and power plants. This move is expected to facilitate faster development and deployment of nuclear energy solutions [3].

References:
[1] https://www.yahoo.com/news/articles/ferc-approves-nextera-waiver-needed-093600784.html
[2] https://www.enerdata.net/publications/daily-energy-news/nextera-cleared-restart-601-mw-duane-arnold-nuclear-plant-us.html
[3] https://theoutpost.ai/news-story/terra-power-and-utah-join-forces-to-explore-nuclear-reactor-sites-amid-ai-driven-power-demand-surge-19501/