US Approves $1.9 Billion Loan to Restart Iowa Nuclear Reactor
The Department of Energy closed a loan of up to $1.9 billion to NextEra Energy on Tuesday. The funds will finance the restart of the Duane Arnold Energy Center, a nuclear plant in Linn County, Iowa that has been shut since 2020.
- 615 megawatts of capacity would return to the Iowa grid upon restart.
- 70% of output is contracted to Google under a 25-year agreement signed in October 2025.
- 30% will go to the Central Iowa Power Cooperative.
- Nearly 1,500 jobs are projected during construction; 450-plus full-time positions once operational.
Why it matters: AI data center expansion has sharply increased demand for firm, low-carbon power. New data centers are expected to nearly triple the sector's electricity demand by 2035.
- Duane Arnold is the third shuttered plant the federal government has committed to restarting, alongside Three Mile Island and Palisades.
- The Sierra Club Iowa Chapter opposes the loan, saying in a public statement that public funds should not reverse the decommissioning of aging, storm-damaged reactors for large tech companies.
How 9 sources split on this story
Where they split: Coverage divides on whether the loan chiefly represents a federal nuclear strategy or a subsidy to serve Google's data center appetite.
Center coverage, 4 sources: The center treats the loan as a notable but uncertain step, flagging that $1.9 billion is modest relative to nuclear project costs and that Google's nuclear deal stands out against broader data-center reliance on fossil fuels.
Engadget11hUS Regulator Approves $1.9 Billion Loan To Spin Up Iowa's Dead Nuclear Reactor For Google
Reuters12hNextEra secures up to $1.9 billion U.S. loan to restart Duane Arnold nuclear center
The Hill10hTrump administration announces $1.9B loan to support Iowa nuclear plant restartTNDThe National Desk6hEnergy Department announces $1.9 billion loan to restart Iowa nuclear plantLeft coverage, 2 sources: The left frames the loan as a tech-industry subsidy, noting that only a small share of output goes to local Iowa customers while Google captures most of the plant's power for AI data centers.
Right coverage, 3 sources: The right frames the loan as evidence of a deliberate Trump administration nuclear renaissance, linking it to energy dominance, AI competitiveness, and job creation.
What’s next: The NRC's licensing review is expected to continue through at least January 2028.
- NextEra targets an early 2029 restart date if licensing clears on schedule.
- Whether the NRC will complete its review on a timeline that supports the 2029 restart target.
- How much of the plant's power — beyond the 50 megawatts cited for the local cooperative — will benefit Iowa residents rather than data centers.
- Whether additional shuttered plants, such as San Onofre, are viable restart candidates.