U.S. backs restart of three shuttered nuclear plants

Cooling towers at a nuclear power plant symbolizing restart of U.S. nuclear capacity expansion

Key Points

01DOE to lend up to $4.4 billion to restart three U.S. nuclear plants
02Projects could restore 2.25 GW of carbon-free power capacity
03Tech firms Microsoft (MSFT) and Google back two restarts via long-term deals
04Palisades, Crane, Duane Arnold target returns between 2027 and 2029

DOE-backed push to restart shuttered reactors

The U.S. Department of Energy is providing up to $4.4 billion in loans to restart three closed nuclear power plants in Michigan, Pennsylvania, and Iowa. The Palisades plant in Michigan, the Crane Clean Energy Center at Three Mile Island in Pennsylvania, and the Duane Arnold Energy Center in Iowa together are expected to restore about 2.25 gigawatts of generating capacity if brought back online.

That combined capacity is described as roughly enough to supply electricity to about 2 million homes and businesses. The initiative is intended to deliver large volumes of carbon-free power at a time of rising electricity demand, including from data centers.

Role of technology companies and long-term power deals

Two of the restart projects are underpinned by long-term arrangements with major technology companies seeking reliable, carbon-free electricity. At the Crane Clean Energy Center, Constellation has a 20-year agreement with Microsoft (MSFT) tied to restarting the reactor.

Constellation announced in 2024 that it would invest $1.6 billion to restart the Crane reactor and aims to return the plant to service in 2027. This project is supported by a $1 billion loan from the Department of Energy, linking federal financing with private-sector demand from a large technology customer.

In Iowa, NextEra Energy (NEE) is collaborating with Google on the planned restart of the Duane Arnold Energy Center. The partners are targeting early 2029 for the plant to resume operation, and NextEra’s leadership has expressed confidence in the feasibility of bringing the unit back.

Palisades restart progress and challenges

Among the three projects, the Palisades plant in Michigan is described as the furthest along in the restart process. Holtec acquired the facility after its closure and moved into late-stage work by beginning to load nuclear fuel in August.

Fuel loading was paused after a fuel assembly tilted, but existing power purchase agreements require Palisades to be operating by March 2027. The restart is supported by a $1.5 billion federal loan approved in 2024, with payments having continued under the Trump administration.

An unprecedented move for U.S. nuclear power

These restarts are notable because no commercial U.S. nuclear reactor is known to have resumed electricity generation after entering the decommissioning, or permanent closure, process. Some reactors abroad have been restarted or refurbished after long shutdowns, but the U.S. effort to reverse decommissioning is without domestic precedent.

Supporters emphasize that bringing existing reactors back is a relatively quick way to add substantial low-carbon capacity compared with building new large reactors. At the same time, the projects have prompted debate over nuclear safety standards and the use of taxpayer-backed loans to fund the revivals.

Key Takeaways

01Federal loans are central to making the three nuclear restarts financially viable, linking public capital with private investment and long-term power contracts.
02Technology sector demand is a major driver, with Microsoft (MSFT) and Google committing to long-term arrangements that help justify the cost and risk of reviving older reactors.
03Because no U.S. reactor has previously restarted after decommissioning began, these projects could set important precedents for how aging nuclear assets are treated in future energy planning.

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