📰 NextEra Eyes Nuclear Revival to Meet AI Power Needs
Plan to restart Iowa’s Duane Arnold plant highlights growing energy demands from AI and data centers.
NextEra Energy NEE 0.00%↑ is taking its first steps toward reviving the Duane Arnold nuclear plant in Iowa, a facility that has been closed since 2020. The company has filed a request with the US Nuclear Regulatory Commission to modify the plant’s licensing, marking the beginning of efforts to meet surging energy demands fueled by artificial intelligence and the rapid growth of data centers.
The 600-megawatt plant originally shut down after its largest customer ended a power-purchase agreement, compounded by damage from a windstorm that accelerated its closure. However, with AI and digital technologies pushing power consumption to new heights, NextEra sees an opportunity to bring Duane Arnold back online as early as 2028.
This move aligns with a broader trend in the energy industry. Last year, Constellation Energy announced plans to restart the Three Mile Island nuclear plant in Pennsylvania to provide power for Microsoft. As data centers, factories, and electrification efforts grow, nuclear energy is re-emerging as a key solution to meet these demands while supporting the green energy transition.
While the prospect of reopening Duane Arnold is promising, challenges remain. Analysts have noted the significant costs and risks involved in reviving older nuclear plants, which could impact the project's feasibility. However, NextEra believes the plant’s simpler design could make it more viable than newer facilities. For now, the company’s request signals its commitment to exploring nuclear energy as a cornerstone of the future power grid.
Source: Bloomberg
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