NextEra Energy (NYSE:NEE) +2.7% post-market Monday after unveiling a partnership with Google (NASDAQ:GOOG) (NASDAQ:GOOGL) to restart the Duane Arnold Energy Center, Iowa’s only nuclear facility, with plans to be fully operational by Q1 2029.
Once operational, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has agreed to purchase power from the 615 MW plant as a 24/7 carbon-free energy source to help power its growing cloud and AI infrastructure in Iowa.
NextEra (NYSE:NEE) said one of the plant’s minority owners, Central Iowa Power Cooperative, will purchase the remaining portion of the plant’s output on the same terms as Google (GOOG) (GOOGL).
NextEra (NEE) also said it agreed to acquire CIPCO and Corn Belt Power Cooperative’s combined 30% interest in Duane Arnold, raising its ownership to 100%
Duane Arnold, which was shut down in 2020 – well before the AI boom that has sparked demand for new power sources – is expected to be online and delivering electricity onto the grid by Q1 2029, pending regulatory approvals to restart the plant.
NextEra (NEE) said it now has nearly 3 GW of energy projects executed with Google (GOOG) (GOOGL) across the U.S.
“The speed with which this deal appears to have come together is further evidence of strong demand for power, particularly with baseload and zero emitting characteristics,” KeyBanc analyst Sophie Karp said in a note.