An Iowa nuclear plant is the next contender to restart, spurred by AI data center demand

Core Viewpoint - The Duane Arnold nuclear plant in Iowa is planning to restart operations by the end of the decade after being shut down in 2020 due to economic reasons, marking a significant development in the U.S. nuclear industry as it seeks to meet growing electricity demand [1][7]. Group 1: Restart Plans and Regulatory Approvals - Duane Arnold is the third U.S. reactor set to restart, following the Palisades nuclear plant in Michigan and Three Mile Island in Pennsylvania, with planned restarts subject to Nuclear Regulatory Commission approval [2]. - The Federal Energy Regulatory Commission (FERC) has approved NextEra Energy's request to reconnect Duane Arnold to the electric grid, with operations expected to resume by the fourth quarter of 2028 at the earliest [3]. - Significant work is required before the facility can restart, but FERC's decision is viewed as a positive step in the process [3]. Group 2: Commercial Interest and Power Purchase Agreements - NextEra is pursuing a power purchase agreement to restart Duane Arnold, capitalizing on the demand for nuclear power from technology companies building data centers [4]. - The recommissioning of Duane Arnold has attracted significant commercial interest from major American companies [5]. - The plant is expected to provide over 600 megawatts of electricity, sufficient for more than 400,000 homes [5]. Group 3: Market Dynamics and Financial Implications - The nuclear industry is experiencing a resurgence as electricity demand from industry and data centers increases, reversing previous trends that favored cheaper natural gas and renewables [9]. - NextEra is consolidating solar grid connections back to Duane Arnold to provide commercial and financial certainty for the recommissioning effort [10]. - The restart process is expected to be capital-intensive, with NextEra planning to spend up to $100 million in 2025 alone [11]. Group 4: Challenges and Future Outlook - NextEra faces supply chain constraints for new transformers needed for the plant, which could delay the restart [12][13]. - The restart of Duane Arnold could help offset potential earnings losses from the phase-out of key tax credits for solar and wind projects after 2027 [15]. - The company views the recommissioning of Duane Arnold as a unique opportunity that avoids the costs associated with building new nuclear facilities [8].