The massive demand for electricity driven by the artificial intelligence (AI) boom is reshaping the US energy market. As the tech industry seeks stable, low-carbon power sources, the Duane Arnold Nuclear Power Plant, which closed in 2020, is now reopening, signaling the return of nuclear energy to the mainstream.
Nuclear power's comeback driven by a surge in electricity demand
According to a CNBC report on September 1st , large AI data centers consume as much electricity as a medium-sized city. To ensure uninterrupted power to computing infrastructure and reduce carbon emissions, technology companies are turning to nuclear energy. Microsoft previously reached an agreement with Constellation Energy to support the restart of the Three Mile Island nuclear power plant in Pennsylvania, setting a new precedent. In this context, restarting existing units offers a cost advantage over building new nuclear power plants. NextEra Energy CEO John Ketchum described the process as follows:
“These are true unicorn opportunities.”
Duane Arnold: The key point from retirement to rebirth
The Duane Arnold Nuclear Power Plant in Iowa was shut down due to cheap natural gas and severe weather that damaged its cooling towers. However, its core equipment remains intact, paving the way for a restart. NextEra Energy has received permission from the Federal Energy Regulatory Commission (FERC) to reconnect the plant to the grid and is seeking a long-term power purchase agreement (PPA). The company aims to restore over 600 megawatts of generating capacity by the end of 2028, enough to power approximately 400,000 homes. NextEra foresees a "data center hotspot" forming around the plant, generating new economic momentum for the region. 
Three major barriers: capital, supply chain and regulation
The restart plan still faces high costs and supply chain bottlenecks. NextEra plans to invest an initial $100 million in 2025 to rebuild cooling towers and order key equipment, such as transformers. However, RTO Insider points out that transformer delivery can take up to three years, and any delay could hinder progress. Furthermore, all projects must undergo rigorous review by the U.S. Nuclear Regulatory Commission . On a policy level, the Trump administration's adjustments to renewable energy tax credits have led some investors to reassess the returns on wind and solar power, redirecting capital back to nuclear energy.
Can the return of nuclear energy fill the electricity gap in the AI era?
Duane Arnold's restart symbolizes the rapid shift in the U.S. energy landscape. Nuclear energy, with its high capacity and low carbon emissions, is a potential key to supporting power stability in the AI era. For energy companies like NextEra, this represents a new growth trajectory; for policymakers and supply chain companies, it presents a stress test for resource reallocation. High capital expenditures, lengthy approval processes, and equipment supply challenges remind the market that the nuclear energy renaissance is not an easy journey. As AI applications continue to expand, whether the United States can strike a balance between safety, environmental protection, and economic efficiency remains to be seen.
In the short term, the restart of nuclear power will provide timely replenishment to the power grid; in the long term, its success or failure will shape the direction of energy investment in the next few decades and will also affect the growth ceiling of the AI industry.
