US is reviving shuttered nuclear plants to meet growing electricity demand, data centers
The U.S. is providing billions of dollars in financing to help restart three shuttered nuclear plants in Michigan, Pennsylvania and Iowa amid rising electricity demand from data centers and artificial intelligence. NextEra Energy, Holtec International and Constellation Energy have agreements with major technology companies to supply carbon-free power, while critics question the safety and use of taxpayer funding.
The U.S. Department of Energy is lending up to $4.4 billion to support the attempted restarts of the Palisades plant in Michigan, the Crane Clean Energy Center at Three Mile Island in Pennsylvania and the Duane Arnold Energy Center in Iowa. Together, the facilities could restore about 2.25 gigawatts of generating capacity. The projects are being advanced as electricity demand grows, particularly from data centers and artificial-intelligence operations.
NextEra Energy is working with Google to restart Duane Arnold by early 2029, while Microsoft has contracted for power from Constellation Energy’s planned restart of the Three Mile Island reactor. Holtec International is also preparing Palisades to return to service, although fuel-loading work was paused after a fuel assembly tilted. Supporters say the projects can quickly restore carbon-free baseload power, while safety advocates and fiscal critics argue federal money should instead address reactor risks or not be used for projects they consider commercially viable.