Nuclear power plants return to service as AI data centers drive energy demand
Three shuttered U.S. nuclear reactors are being reactivated to supply electricity to artificial intelligence facilities, with combined capacity reaching 2.25 gigawatts.
The surge in power consumption from AI data centers has prompted the federal government to fund the restart of three dormant nuclear power plants across the country. The Palisades Nuclear Plant in Michigan, the Crane Clean Energy Center at Three Mile Island in Pennsylvania, and the Duane Arnold Energy Center in Iowa are all returning to operation, collectively adding 2.25 GW of capacity to the electrical grid.
The Palisades facility represents a particularly significant milestone: it is the first nuclear reactor to resume operation after decommissioning had already begun. The plant is furthest along in its restart process, having loaded fuel in August 2026 and expected to reach full operation around March 2027, generating 800 MW.
Holtec Palisades, the company operating the reactor, secured financing through a Department of Energy loan granted under the Biden administration's 2024 nuclear energy initiative. The other two projects received their DoE loans under the Trump administration's 2025 nuclear push.
Three Mile Island returns to service
Constellation Energy is overseeing the Crane Clean Energy Center project at Pennsylvania's Three Mile Island, which involves restarting Unit 1 of the facility. The company committed $1.6 billion in total investment when the project launched in 2024 and received a $1 billion Department of Energy loan in 2025. Microsoft has committed to purchasing the facility's output through a 20-year contract. The reactor is projected to come online in 2027 with a capacity of 835 MW.
Unit 2 at Three Mile Island gained notoriety following a partial meltdown in 1979, though environmental damage proved limited. Unit 1, which Constellation is restoring, remained operational until its 2019 decommissioning without significant problems. The Nuclear Regulatory Commission has conducted a safety inspection, though the agency must still authorize fuel loading before the reactor can begin operation.
Iowa project backed by Google
NextEra Energy and Google are partnering on the Duane Arnold Energy Center in Iowa, the third reactor being brought back online. The facility will deliver 615 MW, with electricity generation anticipated to begin in 2029. NextEra Energy CEO John Ketchum remarked that the company valued its arrangement with Google because "none of the costs are being paid by residential customers in Iowa."
Economics of nuclear revival
All three plants had previously closed because operating costs—particularly labor and maintenance expenses—made nuclear-generated electricity uncompetitive against other energy sources. The economics have shifted dramatically as data center operators face intense power demands and grid connection constraints that limit expansion. These companies are now prepared to pay premium rates for reliable electricity supply rather than wait years for alternative capacity to come online.
Projections for data center power needs in the three states show substantial demand. Michigan anticipates requiring between 1.2 and 2.3 GW for data centers by 2030, Pennsylvania forecasts a range of 0.8 to 3.4 GW, and Iowa estimates 1.55 to 2.8 GW. These estimates carry significant uncertainty, as they encompass planned projects that may not materialize and timelines that could shift due to economic conditions, component availability, and community opposition to large-scale development.