Data Center Record.
Power & Energy

U.S. Nuclear Reactor Restarts for Data Centers

Three retired civilian nuclear reactors across Pennsylvania, Michigan, and Iowa are undergoing commercial restart programs totaling 2.25 GW (2,235 MW) of firm, carbon-free baseload electricity contracted or evaluated for intensive computing facilities.

Every figure, off-taker agreement, and regulatory filing is drawn directly from Nuclear Regulatory Commission (NRC) dockets, regional grid operator (PJM, MISO) queues, and company securities disclosures.

Restart Capacity
2.25 GW
Nuclear Reactors
3
Virtual Power Plant
1.17 GW
PJM VPP Expansion
1,070 MW

The Three U.S. Nuclear Reactor Restarts

Prior to 2024, no retired commercial nuclear power reactor in the United States had ever been restored to commercial operation after formal shutdown. The massive power demands of AI and cloud data centers have reversed that paradigm:

835 MW · PJM Grid

Crane Clean Energy Center (Three Mile Island Unit 1)

Location: Londonderry Township, Dauphin County, Pennsylvania

Constellation Energy announced on September 20, 2024, a 20-year agreement to restore Unit 1 of Three Mile Island (renamed Crane Clean Energy Center in honor of former CEO Chris Crane) to supply 835 MW of dedicated baseload zero-carbon power to Microsoft data centers. Unit 1 is an independent reactor unaffected by the 1979 Unit 2 accident and operated safely for 45 years until its 2019 economic closure.

Operator
Constellation Energy (CEG)
Off-taker
Microsoft Corporation (Hyperscaler / Tech)
Contract Terms
20-year Power Purchase Agreement (PPA) for 100% of facility output
Target Restart
2029 (closed 2019)
Reactor Type
Pressurized Water Reactor (PWR)
Capital Investment
$1.6 billion
NRC Docket
05000289
Key milestones and regulatory filings (3)

  1. Exelon (now Constellation) shuts down Unit 1 after 45 years of commercial operation due to economic distress.

    Associated Press →

  2. Constellation and Microsoft announce historic 20-year PPA and $1.6B plan to restart Unit 1 by 2028.

    Constellation Energy →

  3. Constellation files formal restoration and license review filings with the Nuclear Regulatory Commission.

    U.S. NRC →

800 MW · MISO Grid

Palisades Nuclear Plant

Location: Covert Township, Van Buren County, Michigan

Holtec International acquired the 800 MW Palisades plant in 2022 for decommissioning and subsequently pivoted to an unprecedented commercial restart with backing from a $1.52B DOE loan guarantee and $150M in Michigan state funding. Multi-decade contracts with Wolverine Power Cooperative and Hoosier Energy are contracted to deliver firm clean power to Midwest electric grids supporting intensive computing and manufacturing loads.

Operator
Holtec International
Off-taker
Wolverine Power Cooperative & Hoosier Energy (Cooperative / Utility)
Contract Terms
Multi-decade Power Purchase Agreements supplying member cooperatives and industrial load including regional data hubs.
Target Restart
2025 (closed 2022)
Reactor Type
Pressurized Water Reactor (PWR)
Capital Investment
$2.0 billion
NRC Docket
05000255
Key milestones and regulatory filings (3)

  1. Entergy halts generation at Palisades after 50 years; transfers license to Holtec for decommissioning.

    Reuters →

  2. U.S. Department of Energy announces $1.52 billion conditional loan guarantee to Holtec for Palisades restart.

    U.S. Department of Energy →

  3. DOE and Holtec finalize $1.52B loan closing; Holtec commences major mechanical component overhauls.

    Holtec International →

615 MW · MISO Grid

Duane Arnold Energy Center

Location: Palo, Linn County, Iowa

NextEra Energy is executing the commercial restart of Iowa's only nuclear power facility, the 615 MW Duane Arnold Energy Center in Palo, underwritten by a 25-year Power Purchase Agreement with Google for its Iowa data center campuses and power supply for Central Iowa Power Cooperative (CIPCO). Backed by an up-to-$1.9B DOE loan guarantee closed September 8, 2026, the facility is targeted for commercial restart in Q1 2029.

Operator
NextEra Energy Resources (NEER)
Off-taker
Google & Central Iowa Power Cooperative (CIPCO) (Hyperscaler / Tech)
Contract Terms
25-year Power Purchase Agreement (PPA) underwriting restart for Google AI/cloud campuses in Iowa; CIPCO off-takes remaining cooperative output.
Target Restart
2028 (closed 2020)
Reactor Type
Boiling Water Reactor (BWR)
Capital Investment
$1.0 - $1.2 billion
NRC Docket
05000331
Key milestones and regulatory filings (3)

  1. Severe derecho strikes Linn County; Duane Arnold safely trips offline; decision made to retire plant early.

    Cedar Rapids Gazette →

  2. NextEra Energy CEO confirms active evaluation of Duane Arnold restart spurred by data center energy demand.

    Reuters →

  3. NextEra closes up-to-$1.9 billion U.S. DOE loan guarantee and solidifies Google 25-year off-take underwriting restart for Q1 2029.

    U.S. Department of Energy →

Virtual Power Plants (VPPs) & Demand Response

While nuclear restarts (~2.25 GW) and off-grid gas face multi-year permitting and equipment bottlenecks, Google and distributed energy aggregators are scaling accredited demand response capacity under "Bring Your Own Capacity" (BYOC) models. By paying residential, commercial, and industrial ratepayers across PJM to curtail peak load, these programs free up immediate transmission headroom for Mid-Atlantic data centers:

1170 MW Total (1.17 GW) · PJM Interconnection

Google + Voltus PJM Virtual Power Plant

Scope: 13 states and Washington, D.C. (VA, PA, OH, MD, NJ, IL, DE, IN, KY, MI, NC, TN, WV, DC)

While nuclear restarts (~2.25 GW) and off-grid gas face multi-year permitting and equipment bottlenecks, Google is funding 1.17 GW of accredited distributed capacity to pay local ratepayers to curtail peak usage, freeing up PJM headroom for Mid-Atlantic data centers immediately.

Off-taker / Funder
Google
Aggregator
Voltus
New Capacity Added
1070 MW (1.07 GW) (Oct 2026)
Total Contracted
1170 MW (1.17 GW)
Timeline
Ramps over 3 to 4 years; contracted through 2040
Contract Terms
Bring Your Own Capacity (BYOC) distributed capacity agreement through 2040
Enrolled Distributed Assets
Residential smart thermostats, commercial building HVAC automation, industrial load shifting, and Sunrun distributed home battery storage systems.

Mechanism: Distributed demand response aggregator Voltus enrolls residential smart thermostats, commercial building HVAC automation, industrial load shifting processes, and Sunrun distributed residential home batteries across 13 states and D.C. Ratepayers receive direct financial payouts for shedding load during periods of critical grid strain, providing PJM-accredited capacity that enables Google to interconnect data center load without waiting for transmission line or power plant construction.

Key milestones and announcements (3)

  1. Google and Voltus execute 100 MW pilot BYOC demand response capacity contract in PJM territory.

    Utility Dive →

  2. President Trump publicly urges tech companies to pay community dividends and generate power locally to resolve data center grid strain.

    Reuters →

  3. Google and Voltus announce 1,070 MW expansion (1,170 MW total) to their PJM Virtual Power Plant through 2040.

    The New York Times →

Clean Capacity Comparison (Nuclear Restarts & VPPs)

Facility / Program Type State / Scope Capacity Off-taker Target Horizon Grid
Crane Clean Energy Center (Three Mile Island Unit 1) Nuclear Restart PA 835 MW Microsoft Corporation 2029 PJM
Palisades Nuclear Plant Nuclear Restart MI 800 MW Wolverine Power Cooperative & Hoosier Energy 2025 MISO
Duane Arnold Energy Center Nuclear Restart IA 615 MW Google & Central Iowa Power Cooperative (CIPCO) 2028 MISO
Google + Voltus PJM Virtual Power Plant Virtual Power Plant (BYOC) 13 States + DC 1170 MW Google 2026 to 2040 PJM

Regulatory & Interconnection Framework

Restarting a decommissioned reactor requires dual-track regulatory approvals across the Nuclear Regulatory Commission (NRC) and regional transmission organizations:

  • NRC License Reinstatement: Under 10 CFR 50.82, plants in decommissioning have surrendered authority to load fuel and operate. Operators must obtain license amendments or exemptions restoring Part 50 operating authority.
  • Grid Interconnection Queues: PJM (for Three Mile Island Unit 1) and MISO (for Palisades and Duane Arnold) require systematic system impact and facility studies to model network upgrades necessary for injecting 600–835 MW of continuous generation.
  • Federal Loan Programs & Production Tax Credits: The Title 17 Clean Energy financing program and the Inflation Reduction Act Section 45U/45Y zero-emission nuclear production tax credits provide essential economic backstops for the multi-billion-dollar private capital requirements.
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