Next Era’s Duane Arnold Restart to Power Data Centers

Industry Insights from Next Move Strategy Consulting

As the U.S. grapples with surging electricity demand from artificial intelligence–driven data center NextEra Energy is advancing plans to bring the Duane Arnold nuclear plant in Iowa back online. Positioned to deliver more than 600 megawatts of carbon-free power, the restart underscores a broader industry shift toward nuclear energy as a stable foundation for digital infrastructure.

A Strategic Return to Nuclear Capacity

After closing in 2020 due to economic pressures, Duane Arnold is now set to rejoin the grid by the fourth quarter of 2028, following approval from the Federal Energy Regulatory Commission (FERC). The plant is one of just three mothballed U.S. reactors still viable for restart, alongside Palisades in Michigan and Three Mile Island in Pennsylvania.

Data Centers Driving Demand

The resurgence of Duane Arnold is fueled by commercial interest from leading technology firms eager to secure long-term nuclear power supply for energy-intensive AI operations.

“The recommissioning of Duane Arnold has received significant commercial interest from premier American companies,” said Garrett Goldfinger, NextEra’s executive overseeing the project, in a filing with FERC.

NextEra CEO John Ketchum reinforced the link to digital growth: “If we’re successful in bringing Duane forward, that obviously creates a hot bed of data center activity around that facility.”

Key Milestones and Capital Commitments

• Capacity Contribution: The plant will deliver 600+ megawatts — enough to power 400,000 homes.

• Investment: The project is capital-intensive, with $100 million allocated for 2025 alone.

• Infrastructure Upgrades: Orders for new transformers have been placed, though supply chain delays may extend timelines; dismantled cooling towers and facilities will also need replacement.

“These are unique opportunities because you don’t face the new build costs associated with nuclear,” Ketchum said. “These are really unicorn-type opportunities.”

Industry Outlook

For NextEra, which has long been the nation’s largest renewable developer, Duane Arnold provides diversification and resilience. “You add Duane Arnold to the mix and that’s one of many ways that we have to continue to grow the business in the future,” Ketchum told investors.

Source: CNBC 

Prepared by: Next Move Strategy Consulting