US restarts three nuclear reactors to power AI data centers

Palisades, Three Mile Island unit, and Duane Arnold to add 2.25 GW to grid as tech firms seek reliable energy

By LineZotpaper

Published20 October 2026

Read Time2 min

Three long-idled US nuclear reactors are set to restart after years offline, aiming to deliver a combined 2.25 gigawatts of power to meet the soaring electricity demands of AI data centers, with tech giants Microsoft and Google signing major offtake agreements.

The Palisades Nuclear Plant in Michigan, the Crane Clean Energy Center on Three Mile Island in Pennsylvania, and the Duane Arnold Energy Center in Iowa are being brought back online, according to a recent report. Palisades, which was under active decommissioning, marks the first time a US nuclear reactor has been restarted after dismantling had begun; it began loading fuel in August 2026 and is expected to generate 800 MW around March 2027. The Crane Clean Energy Center repurposes Three Mile Island's Unit 1, which was decommissioned in 2019, and is projected to bring 835 MW online sometime in 2027 after a $1.6 billion refurbishment by Constellation Energy. Microsoft has a 20-year contract as the primary customer. The Duane Arnold Energy Center in Iowa, in a collaboration between NextEra Energy and Google, is expected to provide 615 MW by 2029. NextEra Energy CEO John Ketchum noted that the cooperation with Google means "none of the costs are being paid by residential customers in Iowa."

All three facilities were previously shut down when they were deemed uneconomical to run. The financial landscape has shifted due to overwhelming demand from data centers and grid connection constraints, which have become a primary bottleneck for new data center construction. Operators of the restart projects have secured loans from the U.S. Department of Energy: Palisades borrowed under the Biden administration's 2024 investment in nuclear energy, while the Crane and Duane Arnold projects received loans under the Trump administration's 2025 push. The Crane center still requires approval from the Nuclear Regulatory Commission before fuel loading.

Analysis

Why This Matters

These restarts signal that nuclear power is being repositioned as a key energy source for the grid, driven by the massive and growing power demand from AI data centers.
The projects could help address energy supply constraints that are limiting data center buildouts, potentially accelerating AI infrastructure expansion.
The financial structure, with tech giants like Microsoft and Google underwriting costs, may set a precedent for future private-sector support of nuclear energy.

Background

Nuclear power plants in the US have faced economic challenges for decades, with many retiring early due to low wholesale electricity prices and high maintenance costs. However, the rise of AI and cloud computing has created unprecedented demand for reliable, round-the-clock power. Data center operators are struggling to secure grid connections, making existing nuclear plants an attractive option despite their complexity. The Palisades restart is particularly notable because it involves reversing decommissioning, a process rarely attempted before.

Key Perspectives

Tech giants (Microsoft, Google): These companies face pressure to power their AI operations with low-carbon energy while avoiding further strain on local grids. Their long-term contracts ensure dedicated capacity, and public statements stress that residential customers will not bear the costs. Utility operators (Constellation Energy, NextEra Energy, Holtec Palisades): Restarting nuclear reactors requires substantial investment, $1.6 billion for Crane alone, but offers a steady revenue stream from high-credit customers. Loans from the Department of Energy reduce financial risk. Critics and skeptics: Concerns include the potential for cost overruns, delays, and safety issues, especially given the history of Three Mile Island (though Unit 1 was unaffected by the 1979 partial meltdown). Local communities may resist extended plant operations or worry about water usage and waste storage.

What to Watch

Regulatory approval from the Nuclear Regulatory Commission for the Crane Clean Energy Center fuel loading, which is a key milestone.
Timelines for Palisades and Crane: whether they hit expected 2027 dates or face delays similar to other nuclear projects.
Future announcements of similar reactor restarts or new nuclear builds tied to data center demand, which would indicate whether this trend is accelerating.

Sources

US restarts three shut-down nuclear reactors to feed AI data centers · Latest from Tom's Hardware

Checked

12 claims in this story checked against 1 source: 8 supported.

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Partly supportedThe US has restarted three nuclear reactors.Latest from Tom's Hardware: “Three U.S. nuclear reactors are being restarted after many years offline”
SupportedThe three reactors are expected to add a combined 2.25 GW to the grid.Latest from Tom's Hardware: “expected to bring 2.25 GW total to the grid”
Partly supportedMicrosoft and Google have signed major offtake agreements for the restart projects.Latest from Tom's Hardware: “Microsoft is set to be the main customer, with a 20-year contract.”
Partly supportedPalisades is the first US reactor to be restarted after dismantling had begun.Latest from Tom's Hardware: “apparently marking this event as the first time a nuclear reactor is being put back to work after dismantling had begun.”
SupportedPalisades is expected to generate 800 MW around March 2027.Latest from Tom's Hardware: “is expected to generate 800 MW around March 2027.”
SupportedCrane is projected to bring 835 MW online sometime in 2027.Latest from Tom's Hardware: “This facility is projected to bring 835 MW online sometime in 2027.”
SupportedConstellation said it would spend $1.6 billion on the Crane reactor project.Latest from Tom's Hardware: “The project started in 2024, with Constellation Energy saying it would spend $1.6 billion total for the reactor.”
SupportedMicrosoft is the primary customer for Crane under a 20-year contract.Latest from Tom's Hardware: “Microsoft is set to be the main customer, with a 20-year contract.”
SupportedDuane Arnold is expected to provide 615 MW by 2029.Latest from Tom's Hardware: “The predicted output is 615 MW, with the juice expected to start flowing in 2029.”
Partly supportedNextEra Energy CEO John Ketchum said, “none of the costs are being paid by residential customers in Iowa.”Latest from Tom's Hardware: “Next Energy CEO John Ketchum stated that the firm was happy with its cooperation contract with Google, as it meant that “none of the costs are being paid by residential customers in Iowa.””
SupportedPalisades borrowed under the Biden administration's 2024 nuclear-energy investment, while Crane and Duane Arnold received loans under the Trump administration's 2025 push.Latest from Tom's Hardware: “Palisades borrowed from the DoE under the Biden administration's 2024 investment in nuclear energy, while the others were issued under the purview of the Trump administration's 2025 push.”
SupportedCrane still needs NRC approval before it can load fuel.Latest from Tom's Hardware: “This entity still needs to grant its blessing before the reactor starts loading fuel.”