US plans to restart three retired nuclear plants for AI data centers with $4.4 billion federal loans
The US intends to restart three decommissioned nuclear power plants to alleviate AI data center power shortages, adding an estimated 2.25GW capacity, with Microsoft and Google signing power purchase agreements.
According to TechRadar, the United States is reportedly gearing up to restart three previously closed nuclear power plants specifically to keep up with the energy demands caused by AI data centers. Together, these three facilities are expected to add 2.25 gigawatts (GW) of electricity to the grid, enough to power two million homes and businesses.
The U.S. Department of Energy is a major supporter of these projects, providing up to $4.4 billion in federal loans. Microsoft and Google have already signed agreements to purchase electricity from two of those facilities, with power plant restarts slated for between 2027 and 2029. These moves likely mark the first commercial nuclear reactors to be restarted after being formally decommissioned, driven by surging demand for reliable and low-carbon electricity.
Specifically, the Palisades Nuclear Plant in Michigan, which closed in 2022, has electricity purchase agreements requiring it to return to service by March 2027. The Crane Clean Energy Center in Pennsylvania is also targeting a 2027 online date, while the Duane Arnold Energy Center in Iowa is looking for a 2029 go-live date.
This initiative aligns with the Trump administration's goal to quadruple US nuclear generating capacity from around 100GW in 2024 to 400GW by 2050. However, restarting aging reactors has drawn criticism over safety concerns, especially in a world of heightened geopolitical activity and natural disasters.