Google Is the Latest Tech Titan to Go Nuclear to Power Its AI Ambitions

Core Insights - Google has signed a transformative nuclear power purchase agreement (PPA) with NextEra Energy to secure power from the Duane Arnold Energy Center, which is set to restart by 2029 [1][4] - This agreement is part of a broader trend among major tech companies, including Microsoft and Meta, to secure nuclear power to meet the increasing energy demands of AI data centers [2][10] - The U.S. electricity demand is projected to grow at an annual rate of 4% to 5%, prompting tech companies to lock in energy supplies and benefiting leading power producers [13] Google and NextEra Energy Collaboration - Google has entered into a 25-year PPA to purchase power from the 615-megawatt Duane Arnold Energy Center in Iowa, which was shut down in 2020 [4][5] - NextEra Energy plans to restart the facility by the first quarter of 2029, and Google will purchase a portion of the plant's output [4][5] - Google has secured nearly 3 gigawatts of power from NextEra Energy, indicating a significant commitment to future energy supply [8] Broader Industry Trends - Similar nuclear power agreements have been made by Microsoft and Meta, contributing to a resurgence in nuclear energy in the U.S. [2][10] - Microsoft signed a 20-year deal with Constellation Energy to restart the Three Mile Island Unit 1, which will provide 845 MW of output starting in 2028 [10][12] - Meta has also secured a 20-year deal with Constellation for power from the Clinton Clean Energy Center, starting in mid-2027 [12] Future Energy Demand - The combination of AI data centers, electric vehicles, and new manufacturing facilities is expected to drive unprecedented electricity demand in the U.S. [7] - Leading power producers like NextEra, Brookfield Renewable, and Constellation are positioned to benefit from this surge in demand, potentially generating strong returns for investors [13]