Rebooting Nuclear Energy
Three U.S. nuclear reactors are being restarted after years offline, expected to contribute 2.25 GW total to the grid to support growing AI data center power needs. The Palisades Nuclear Plant in Michigan, the Crane Clean Energy Center in Pennsylvania, and the Duane Arnold Energy Center in Iowa are undergoing major refurbishments.
The Palisades plant was under active decommissioning, marking a rare instance of a nuclear reactor returning to work after dismantling had begun. It began loading fuel in August 2026 and expects to generate 800 MW around March 2027.
Holtec Palisades secured a loan from the U.S. Department of Energy under the Biden administration's 2024 nuclear energy investments, while the other facility projects received backing under subsequent administration pushes.
Individual Plant Projects
The second reactor is the Crane Clean Energy Center on Pennsylvania's Three Mile Island, repurposing Unit 1. Constellation Energy committed $1.6 billion to the project alongside a $1 billion Department of Energy loan. Microsoft is the primary customer with a 20-year contract, and the facility is projected to bring 835 MW online in 2027.
Unit 1 is separate from the Unit 2 reactor involved in the 1979 partial meltdown. The restoration project has undergone safety inspections by the Nuclear Regulatory Commission, which must grant final approval before fuel loading begins.
The Duane Arnold Energy Center in Iowa is the third unit returning to the grid through a partnership between NextEra Energy and Google. The 615 MW plant is expected to start supplying power by 2029, with corporate contracts structured to protect residential customers from bearing the costs.
Shifting Economics
All three facilities were previously shut down because high labor and maintenance expenses made nuclear-generated power more costly than alternative energy sources.
Data Center Demand
Shifting financial landscapes, overwhelming demand, and grid connection bottlenecks have driven data center operators to seek immediate premium power rather than waiting years for new infrastructure.
Forecasts project substantial regional data center energy demand around 2030, with Michigan requiring between 1.2 and 2.3 GW, Pennsylvania ranging from 0.8 to 3.4 GW, and Iowa anticipating 1.55 to 2.8 GW, pending project timelines and regulatory hurdles.
