The Resurgence of Nuclear Power in the AI Era: NextEra and Google's Duane Arnold Restart as a Strategic Inflection Point

The artificial intelligence (AI) revolution is reshaping global energy demand, with data centers consuming an estimated 2% of the world's electricity today. As AI models grow in complexity and adoption accelerates, the need for reliable, low-carbon power sources has never been more urgent. Enter nuclear energy-a technology long sidelined by cost and public perception but now reemerging as a critical pillar of the clean energy transition. At the forefront of this shift is NextEra Energy's partnership with Google to restart the Duane Arnold nuclear plant in Iowa, a project that could redefine how tech giants power their AI-driven futures.

A 25-Year Bet on Nuclear and AI Synergy

In a landmark agreement, Google has committed to a 25-year power purchase deal with NextEra Energy to supply energy from the Duane Arnold Energy Center, a 615-MW nuclear plant that shut down in 2020 but is slated to restart by early 2029, according to a CBS2 Iowa report. This collaboration marks the first major U.S. nuclear restart in decades and underscores a strategic alignment between clean energy and AI infrastructure. By securing a stable, carbon-free power source, Google is addressing the surging electricity needs of its data centers while reducing reliance on intermittent renewables. For NextEra, the project reinforces its position as the "world's largest renewable utility" while diversifying into next-generation nuclear technologies, the CBS2 Iowa report adds.

The Duane Arnold restart also highlights the economic potential of nuclear energy. The CBS2 Iowa report says the project is expected to create hundreds of jobs in Iowa, blending environmental goals with local economic development. This model-where tech companies partner with utilities to fund and operate nuclear plants-could become a blueprint for scaling clean energy in the AI era.

Nuclear Power as the Backbone of AI's Energy Appetite

The energy demands of AI are staggering. Large language models and machine learning algorithms require massive computational power, often hosted in data centers that operate 24/7. According to a Georgia Tech report, nuclear energy's high energy density and continuous output make it uniquely suited to meet these needs. This is already playing out in Pennsylvania, where the restart of the Three Mile Island Unit 1 reactor-backed by a 20-year agreement with Microsoft-aims to supply carbon-free electricity to data centers as part of Microsoft's carbon-negative goals, the Georgia Tech report notes.

Nuclear's resurgence is also tied to broader decarbonization trends. The Georgia Tech report highlights that the U.S. Energy Information Administration notes 93 reactors operate across 28 states, with new projects like Georgia's Vogtle Plant (Unit 4) coming online in 2024. These developments signal a shift in public and corporate sentiment, driven by the urgency of climate goals and the scalability of nuclear power.

NextEra's Strategic Position in the Clean Energy Transition

NextEra Energy's collaboration with Google is not an isolated move but part of a broader strategy to dominate the clean energy landscape. With a project backlog of ~29–30 GW-including gigawatts dedicated to tech and data-center clients-the company is uniquely positioned to capitalize on the AI-driven energy boom, the Georgia Tech report observes. Analysts note that NextEra's diverse portfolio of wind, solar, and nuclear assets aligns with global decarbonization targets, while its scale ensures cost efficiencies in a market increasingly prioritizing "always-on" power.

This strategy is already paying dividends. NextEra's stock has outperformed the S&P 500 over the past five years, reflecting investor confidence in its long-term vision. Meanwhile, Google's commitment to 24/7 carbon-free energy by 2030 further cements the tech giant's role as a nuclear energy advocate.

Palantir's AI Surge: A Case Study in Energy Demand

The energy implications of AI are not just theoretical. Palantir Technologies, a leader in AI-powered data platforms, has seen its stock surge by 300% in 2025, driven by contracts with the U.S. Army, UK defense agencies, and commercial clients like Boeing and Snowflake, according to a TS2 Tech analysis. These contracts require vast computational resources, underscoring the need for scalable, reliable energy sources. As Palantir's growth demonstrates, the AI economy is not a niche market but a transformative force that will redefine energy consumption patterns.

A Strategic Inflection Point for Nuclear Energy

The Duane Arnold restart represents more than a single project-it is a strategic inflection point for nuclear energy. By aligning with tech giants like Google and Microsoft, nuclear power is shedding its legacy of cost overruns and public skepticism. Instead, it is repositioning as a cornerstone of the clean energy transition, capable of meeting the AI era's unprecedented demands.

For investors, this shift presents compelling opportunities. NextEra Energy's hybrid model of renewables and nuclear, combined with Google's long-term energy procurement strategy, offers a glimpse into the future of power generation. As AI continues to reshape industries, the companies that secure reliable, low-carbon energy sources will lead the next wave of innovation-and profit.