US Reviving Shuttered Nuclear Plants to Meet Growing Electricity Demand and Power Data Centers

Three plants targeted for restart

The Department of Energy is providing loans of up to $4.4 billion to restart Palisades in Michigan, the Crane Clean Energy Center in Pennsylvania and Duane Arnold in Iowa. Together, the facilities could supply 2.25 gigawatts, enough for about 2 million homes and businesses.

All three plants closed before their operating licenses expired, largely because their electricity was considered too costly. The Trump administration is promoting nuclear power for artificial intelligence and manufacturing, while also supporting upgrades at operating reactors.

Technology companies seek power

Two plants have contracts with major technology companies that are prepared to pay more for large supplies of carbon-free electricity. NextEra Energy and Google are working to restart Duane Arnold by early 2029.

Microsoft has an agreement with the Crane Clean Energy Center, at Three Mile Island near Harrisburg. The site was the location of the worst commercial nuclear power accident in the United States in 1979. One reactor was destroyed; the remaining operating reactor was shut down in 2019 after its owner said it was losing money and Pennsylvania lawmakers had declined to provide a subsidy.

Duane Arnold's path back

Duane Arnold began operating in 1975 and had been scheduled to close permanently in October 2020. The plant shut down earlier, in August 2020, after a powerful storm known as a derecho damaged it. Replacing it with lower-cost sources, including wind, was projected to save Iowa customers $300 million in energy costs.

Holtec International bought the facility and started dismantling it, but the work had not passed an irreversible point. Michigan officials sought to retain nuclear jobs and energy and encouraged Holtec to pursue a restart, providing state funding. The Biden administration approved a $1.5 billion loan in 2024, and the Trump administration continued the payments.

Preparation and safety concerns

Restarting a reactor requires returning nuclear workers and confirming their training is current, checking equipment and maintenance, securing fuel, and obtaining regulatory approval to restore the operating license. Allen, an associate dean for research at the University of Michigan's College of Engineering, described the task as part of a larger, complicated system.

Edwin Lyman of the Union of Concerned Scientists said public money should address safety risks. He noted that many US plants were built from 1970 to 1990 to withstand the natural disasters of that period, while climate change is making extreme weather more frequent and severe.

Jack Spencer of The Heritage Foundation argued that federal funding is unnecessary for projects with strong energy demand. Holtec says reopening Duane Arnold would restore baseload power, bolster energy security and show how nuclear energy can help meet rising electricity needs.