Iowa's Only Nuclear Plant Set for 2029 Restart After $1.9B Federal Loan
PALO, Iowa — Iowa's only nuclear power plant is on track to restart by early 2029, backed by a $1.9 billion federal loan and a 25-year power deal with Google, a move officials say will boost energy reliability and lower costs for eastern Iowa customers.
NextEra Energy, which owns the Duane Arnold Energy Center near Palo, announced Tuesday that the U.S. Department of Energy loan will help refuel the 615-megawatt plant, which has been idle since a devastating derecho in 2020 damaged its cooling towers. The restart is part of the Trump administration's push to quadruple U.S. nuclear power by 2050.
What does the Duane Arnold restart mean for Iowa energy?
Under the agreement, about 93% of the plant's output will power Google's cloud and AI data centers in Iowa, with Central Iowa Power Cooperative (CIPCO) purchasing the remaining 7% on the same terms. NextEra CEO Brian Bolster said the deal ensures new demand pays for itself while spreading fixed costs across more users, which should lower rates for existing customers.
“We're bringing something online that's meeting new demand. But the people who are asking for the demand are paying for the demand,” said Bolster, an Iowa native.
U.S. Deputy Energy Secretary James Danly echoed that sentiment, saying, “Every time you build a new facility to serve a new load, you have downward costs. That is a universal fact of utility regimes.”
How will the restart boost Iowa's economy and jobs?
NextEra estimates the project will generate $9.1 billion in economic activity in Iowa over 25 years and create about 400 permanent, full-time jobs. Construction is expected to support roughly 1,650 direct and indirect jobs.
About half of the permanent positions will be filled by former Duane Arnold employees, including Ray Wheaton, who directs the restart effort, and Mike Davis, who came out of retirement to manage regulatory licensing. Officials touted the plant's 45-year safety record.
“That's devotion to a facility and an enterprise that people care about deeply and want to be a part of,” Danly said during a media tour of the facility.
What legal and regulatory hurdles remain?
NextEra must clear a legal challenge filed last month in Polk County District Court by Beyond Nuclear, a Maryland-based group that argues the restart won't benefit Iowa consumers. The group claims the plant will generate 14 metric tons of high-level radioactive waste annually, adding to the 688 metric tons already stored on site.
Beyond Nuclear also contends the Iowa Utilities Commission failed to consider the impact of four industrial solar projects that NextEra dropped when it moved to restart the plant.
Bolster said he expects a “successful resolution” to the lawsuit. The utilities commission declined to comment, pointing to its July order that dismissed Beyond Nuclear's claims as lacking specific errors.
What role does the state and federal government play?
Gov. Kim Reynolds, who signed a bill in June providing tax incentives for nuclear development, praised the federal loan as proof of the project's importance. Danly said the administration is committed to preserving and upgrading existing nuclear plants, and he highlighted efforts to recycle spent fuel.
“The fuel isn't spent. It still retains 98% of the energy density it had,” Danly said. “Spent fuel is an asset on the ledger, not a liability.”
Is nuclear power safe and secure in Iowa?
Plant officials emphasized the facility's 45-year safety record and noted that the 1970s-era control room has been upgraded with the latest technology, making it less vulnerable to cyberattacks. Alex Neumann, a trainee for senior operator licensure, said the plant's design offers unique security advantages.
With construction and regulatory steps underway, NextEra aims to have Duane Arnold back online by the first quarter of 2029, delivering reliable, carbon-free power to Iowans and supporting the state's growing tech economy.