Google and NextEra Energy are joining forces to bring back the Duane Arnold Energy Center in Iowa. The electricity from this plant will power Google’s growing AI systems and data centers, helping the company reach its clean energy goals.
The partnership comes as Alphabet Inc., Google’s parent company, reported strong third-quarter earnings and a rise in stock value following better-than-expected results. Alphabet’s revenue grew, driven by gains in cloud services and AI investments. The company raised its capital spending forecast to over $90 billion for 2025. This shows its commitment to expanding clean, reliable energy for its growing data network.
The project gives the U.S. nuclear industry a fresh boost at a time when demand for reliable, low-carbon electricity is rising sharply. As data and AI grow, companies are racing to get enough clean energy. They need it to power their technology all day and night.
Google’s Nuclear Comeback: Powering AI the Clean Way
The Duane Arnold Energy Center is located near Cedar Rapids, Iowa. It stopped operating in 2020 after more than 45 years of service. Now, NextEra Energy, one of the largest renewable energy companies in the U.S., plans to restart the plant by 2029.
Once operational, the reactor will generate about 615 megawatts (MW) of power, enough to supply hundreds of thousands of homes. Under a 25-year agreement, Google will purchase most of the plant’s output to run its expanding network of cloud and AI data centers.
The restart could create hundreds of construction jobs and dozens of permanent roles when the plant reopens. Local suppliers, engineering firms, and service companies will also benefit. State officials expect the project to increase tax revenue and economic activity across eastern Iowa.
Just after this deal, Alphabet reported its 3rd Quarter financial results.
Alphabet’s Q3 Earnings Fuel the Next Energy Push
Alphabet announced its third-quarter 2025 earnings. Total revenue reached $102.3 billion. This marks a 16% rise compared to last year. Net income rose to $27.6 billion, driven by strong ad sales, continued growth in Google Cloud, and higher demand for AI-powered services.
Google Cloud generated $15.16 billion in quarterly revenue, up 26% year over year. Its core Search and “Other” businesses brought in $56.57 billion, while YouTube ads contributed another $8.8 billion.
Alphabet increased its annual capital spending forecast to $91–93 billion. This change reflects investments in data centers, AI infrastructure, and clean energy projects, including the Duane Arnold restart.
The results highlight how Google’s financial strength supports its climate commitments. The company is investing heavily in clean power, energy storage, and long-term sustainability as AI models and data operations grow.
Following the release, Google’s stock broke a record with the price surging to its highest level.
AI’s Growing Appetite for Electricity
Artificial intelligence and large-scale data centers are transforming the energy landscape. Training advanced AI models and handling billions of searches requires a lot of computing power. So, they also need constant electricity.
In 2024, data centers worldwide consumed about 415 terawatt-hours (TWh) of electricity, or roughly 1.5% of global demand. The International Energy Agency (IEA) projects that number could rise to 945 TWh by 2030, more than doubling in just six years.
A report from Goldman Sachs suggests that total data center power demand could increase 160% by 2030 compared with 2023 levels. In the U.S. alone, data centers could account for 8% of national electricity use by the end of the decade.
That surge makes always-on, low-carbon energy essential. Unlike solar and wind, nuclear power provides a steady output regardless of the weather. For Google and other AI companies, stability is vital. It helps them keep their networks online 24/7 and cut emissions.
Why Tech Giants Are Turning to Nuclear Power
Tech giants are now among the most active investors in advanced nuclear energy. Companies such as Google, Microsoft, and Amazon are pursuing nuclear deals to meet both AI expansion and climate goals.
Their reasons are straightforward:
- Reliability: Nuclear reactors generate power 24/7, supporting constant digital workloads.
- Low-carbon: They produce almost no greenhouse gas emissions.
- Cost stability: Uranium fuel costs are predictable over long timeframes.
- Grid support: Nuclear power balances variable renewables like solar and wind.
For Google, using nuclear power aligns with its plan to run all operations on clean energy every hour of every day by 2030. NextEra and other utilities can reach new markets. They supply low-carbon electricity directly to data centers and tech campuses.
Engineering a Second Life for Duane Arnold
Restarting a nuclear plant is not easy. The U.S. Nuclear Regulatory Commission (NRC) must approve the restart first. They will review safety systems and environmental impact.
NextEra must rebuild cooling towers, replace old parts, and update digital controls before operations can start again. The company will also train a new workforce to operate the plant under updated safety rules.
Experts estimate that reviving an older reactor can be 30–40% cheaper than building a new one. Even so, the project includes billions in upgrades. It also faces complex licensing and global supply-chain challenges.
Still, the economic payoff could be significant. Restarting Duane Arnold boosts local energy reliability and supports federal clean power goals. It shows how old infrastructure can meet today’s climate needs.
Google’s Carbon-Free Energy Goal
Google has matched 100% of its annual electricity use with renewable power purchases since 2017. But its next milestone is far tougher—running entirely on carbon-free energy at all times by 2030.
The company already sources solar, wind, and geothermal power across multiple continents. Yet, because these sources are intermittent, nuclear can play an important balancing role.
The Duane Arnold partnership ensures a steady supply when the grid fluctuates. Google is exploring small modular reactors (SMRs), geothermal wells, and long-duration energy storage. These are key parts of its clean power strategy.
Google wants to diversify its clean energy sources. This will help its AI infrastructure stay strong against climate change and keep costs stable. The chart below shows 6how t6he tech giant’s clean energy avoided emissions.
Powering the Digital Future
The Google–NextEra deal marks a new chapter in how technology companies think about power. For Google, it guarantees access to reliable, low-carbon electricity for decades. NextEra builds a profitable model. It supplies the data economy and extends the lifespan of nuclear infrastructure.
If successful, the project could serve as a blueprint for reviving other shuttered U.S. reactors. It demonstrates how legacy assets can be modernized to meet today’s energy and AI needs without adding new carbon emissions.
More broadly, it highlights a turning point in the clean energy transition. As AI use grows worldwide, the demand for “firm clean power” increases too. This includes reliable sources like nuclear, hydro, and geothermal energy. Federal tax incentives from the Inflation Reduction Act make projects more appealing to private investors.
Rebuilding and restarting the Duane Arnold Energy Center will take several years of engineering work, testing, and regulatory review. If the process stays on schedule, the plant could be back online by 2029.
For Google, this partnership is more than an energy deal. It also reflects how the company is linking its financial strength to its climate and AI goals. After posting strong third-quarter earnings and a solid rise in revenue, the company has shown that its investments in AI and cloud services are not only profitable but also shaping its long-term sustainability plans.
The Duane Arnold project fits into that vision by ensuring that Google’s expanding data operations are powered by clean, reliable energy. This collaboration shows that the future of AI depends as much on clean, continuous power as it does on computing power. Nuclear energy, once seen as outdated, is now becoming one of the key engines driving the digital and energy economy forward.
The post After $102B Quarter and Record Stock, Google Turns to Nuclear to Power the AI Boom appeared first on Carbon Credits.
