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DOE Backs Restart of 3 Nuclear Plants for Data Centers

United States

Chip Somodevilla/Getty Images/Getty

Chip Somodevilla/Getty Images/Getty

What Happened

DOE is lending up to $4.4 billion to restart three shuttered reactors — Palisades, Three Mile Island (Crane) and Duane Arnold — to restore about 2.25 GW via loans and long-term power contracts with tech firms. Holtec paused fuel loading at Palisades after an assembly tilted and is investigating.

Key Implications

Reuters reports that Palisades still has room to return to service because Holtec said the dismantling work it began was not irreversible, and the plant's operating license runs through 2031.

What Happened

DOE is lending up to $4.4 billion to restart three shuttered reactors — Palisades, Three Mile Island (Crane) and Duane Arnold — to restore about 2.25 GW via loans and long-term power contracts with tech firms. Holtec paused fuel loading at Palisades after an assembly tilted and is investigating.

Key Implications

Reuters reports that Palisades still has room to return to service because Holtec said the dismantling work it began was not irreversible, and the plant's operating license runs through 2031.

Where Sources Agree

  • arrows_inputDOE Nuclear Restart Funding: Some coverage highlights the Department of Energy’s $4.4 billion loan to restart the Palisades, Crane, and Duane Arnold nuclear plants as a significant effort to restore 2.25 gigawatts of electricity, according to the Department of Energy.
  • arrows_inputBig Tech Energy Contracts: Several outlets confirm that major technology firms, including Microsoft and Google, have secured contracts to purchase carbon-free energy from shuttered nuclear plants currently undergoing restarts to support rising data center electricity needs, according to official sources.
  • arrows_inputTechnical Challenges of Restart: Various sources indicate that restarting a decommissioned nuclear plant is comparable to reviving an idle car; it requires a valid license and comprehensive maintenance to ensure all systems function, according to nuclear engineering experts.

Where Sources Disagree

  • arrows_outputNuclear Plant Closure Dates: Reports vary regarding which nuclear facility was slated for an October 2020 closure; some sources attribute this date to the Duane Arnold plant, while others associate the same timeline with the Palisades facility.
  • arrows_outputNuclear Restart Complexity: Reports describe the effort to revive shuttered nuclear plants as an unprecedented undertaking, though others emphasize that restarting a reactor—while complex—is a relatively straightforward process.

Timeline

March 2027 Upcoming

Big Tech deals and targets; debate: Constellation announced a $1.6 billion plan in 2024 to restart Three Mile Island aiming for 2027 and Palisades' power purchase agreements require it be in service by March 2027, while NextEra and Google target Duane Arnold by early 2029; the moves are backed by federal loans but have drawn criticism over taxpayer risk and safety concerns from experts and advocacy groups.

August 2024

Federal loans and restart work: The Department of Energy committed federal financing — up to about $4.4 billion across three projects — and provided loans (including a reported $1.5 billion and a $1 billion loan) to restart Palisades, Three Mile Island and Duane Arnold; in August (reported in 2024) Holtec began loading fuel as part of restart work but paused after a fuel assembly tilted.

2022

Palisades closed and sold: The Palisades plant, which operated from 1971 until 2022 when owner Entergy left the nuclear business, had its operating license through 2031 and was bought by Holtec, which began dismantling but left reversible steps.

Summary by Ground AI

Sources

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A varied selection of sources chosen by Ground to reflect the diversity of this story’s coverage.

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