NextEra Energy officials say two “transformative” agreements, including one with tech giant Google, will further propel the potential restart of the Duane Arnold Energy Center near Palo.
Under the first, and most locally impactful, agreement, Google will purchase power from the Duane Arnold nuclear plant under a 25-year agreement to support its cloud and AI infrastructure in Iowa – including the Google data center under construction in southwest Cedar Rapids and another Google data center proposed near Duane Arnold – while the Central Iowa Power Cooperative (CIPCO) will purchase the remaining output.
In addition, NextEra Energy announced agreements to acquire CIPCO and Corn Belt Power Cooperative’s combined 30% interest in the plant, resulting in NextEra’s full ownership of Duane Arnold.
Both agreements were announced in a news release Monday, Oct. 27.
Under the agreement, Google would purchase “the majority” of the power output from a restarted Duane Arnold plant, while CIPCO and Corn Belt Co-Op would use an estimated 50 megawatts of remaining power for their customers across Iowa.
The announcement also said NextEra Energy and Google have signed an agreement to explore development of new nuclear generation to be deployed across the U.S.
“This definitely means we’re moving forward with starting Duane Arnold, pending regulatory approvals,” Duane Arnold spokesperson Bill Orlove said, following an extended engineering evaluation, community engagement and coordination with federal, state and local authorities.
Another key element of the announcement, Mr. Orlove said, is that all of the power from a restarted Duane Arnold would be used in Iowa.
“It’s not going to be going outside of the state,” he said.
While the restart of the Duane Arnold plant itself still requires regulatory approvals (see related story), leaders hailed the agreement as a pivotal step in the process.
“Restarting Duane Arnold marks an important milestone for NextEra Energy,” said John
Ketchum, chairman and CEO of NextEra Energy, in the release. “Our partnership with Google not only brings nuclear energy back to Iowa — it also accelerates the development of next-generation nuclear technology.”
Mr. Ketchum expounded on his thoughts during a quarterly earnings call Tuesday morning, Oct. 28. While not directly addressing the costs associated with restarting the plant, he said “we feel very good about our ability to recommission Duane Arnold very efficiently.”
“The plant’s in great shape,” he said. “The team that’ll be doing the recommissioning is the same team that did the decommissioning. I’ve been out there recently to tour the facility. It’s in good shape.”
Later in the call, he elaborated on the plant’s readiness for restart.
“Having the same team that did the decommissioning leading the recommissioning is an enormous advantage, because folks know exactly what was done,” he said. “I think the scope is pretty well defined, and we know what needs to be done. When I went through (the plant), it was like we just kind of put a lock on the door and got the keys out and opened the lock back up … there’s obviously some work that has to be done to bring the plant back online, but we feel very good about our ability to execute against what’s in front of us.”
Energy customers in Iowa will not bear costs associated with the power Google purchases from the facility, according to the announcement. The power purchase agreement covers costs for energy production from Duane Arnold.
Several government and company leaders expressed excitement about the announcement.
“Building on two decades of work in Iowa, including our recent $7 billion investment in the state this May, Google is proud to partner with NextEra Energy to reopen the Duane Arnold Energy Center – a project that will deliver nuclear energy and hundreds of new job opportunities in the Hawkeye State by the beginning of 2029,” said Ruth Porat, president and chief investment officer of Alphabet and Google. “This partnership serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy.”
“CIPCO has a proud and longstanding history with Duane Arnold Energy Center, and we’re thrilled that nuclear energy will once again contribute to our state’s energy future,” said Andrew St. John, executive vice president and CEO of CIPCO. “As a cooperative generation and transmission provider, CIPCO remains committed to our all-of-the-above energy strategy. The restart of Duane Arnold will strengthen our generation portfolio with clean, baseload generation — furthering our ability to deliver safe, reliable and cost-effective power to our cooperative member-owners across Iowa.”
“Iowa isn’t just a place to build; it’s a place to lead,” Iowa Gov. Kim Reynolds said. “(This) announcement from NextEra Energy and Google further cements Iowa’s leadership in powering America’s AI infrastructure. Meeting the demands of emerging technologies requires reliable, clean energy and the Duane Arnold nuclear facility is ideally positioned to deliver it. By advancing nuclear energy and AI innovation together, Iowa is shaping a sustainable digital future that drives economic growth, strengthens communities and keeps America competitive.”
“Bringing Duane Arnold back online is a big win for Linn County and the entire state of Iowa,” said State Sen. Charlie McClintock, who represents Iowa’s 42nd district. “Kids would watch their parents work at the plant and then grow up and work there themselves. Now, we’re bringing back multigenerational local jobs. This announcement shows that Iowa can support all forms of energy, and we can keep the lights on for our residents’ homes and local businesses, as well as the companies that we welcome to the Hawkeye State.”
“There is such an enormous demand for energy, not only in Iowa, but in the United States, and with the (Trump) administration’s goal of putting more megawatts online by 2030, this is helping reach that goal and being able to handle or manage some of the enormous need in the state and in the country,” Mr. Orlove added. “For Iowa specifically, this is certainly a tremendous benefit for the state and for the local community. It’s meeting the needs of the community, both in terms of power needs and quality jobs.”
