AI Boom Fuels Nuclear Revival: Tech Giants Restart Shuttered Plants to Meet Surging Power Needs

The explosive growth of artificial intelligence (AI) is supercharging electricity demand, thrusting nuclear energy back into the spotlight as a reliable, clean solution for stabilizing power grids. As data centers race to support AI infrastructure, major tech companies are striking landmark deals to resurrect decommissioned nuclear plants, backed by U.S. government support.

Global energy consumption from data centers is forecast to double by the end of the decade, according to the International Energy Agency (IEA). In the U.S., these facilities could gobble up 6.7% to 12% of total energy by 2028—a sharp rise from just over 4% in 2024. The Electric Power Research Institute (EPRI) goes further, projecting U.S. data centers might consume up to 17% of electricity by 2030. To counter this, the U.S. Department of Energy (DOE) aims to triple nuclear energy production by mid-century.

Tech-Nuclear Partnerships Take Center Stage
Leading the charge are collaborations between Big Tech and nuclear operators. In 2024, Constellation Energy partnered with Microsoft to revive a reactor at Pennsylvania's Three Mile Island plant, now rebranded as the Crane Clean Energy Center. The DOE sweetened the deal with a $1 billion loan guarantee approved in February 2026, targeting a restart by mid-2027. Constellation also inked a 20-year power agreement with Meta Platforms for output from Illinois' Clinton Clean Energy Center.

Meanwhile, Alphabet (Google's parent) tapped NextEra Energy to reboot Iowa's Duane Arnold Energy Center, shuttered in 2020 as the state's sole nuclear facility. Under a 25-year power purchase agreement, the plant aims for full operation by Q1 2029, subject to regulatory nods. The duo also pledged to scout nationwide nuclear restarts. These moves mark a pivot: tech giants are funding existing assets' revival over building anew, securing long-term clean power for AI expansion.

Financial Strength Underpins the Revival
These operators boast robust finances, appealing to investors eyeing stability amid AI stock volatility:

• Constellation Energy: Posted $9.39 adjusted operating earnings per share in 2025 (up from $8.67 in 2024). Offers a 0.5% dividend yield with a low 17% payout ratio, signaling room for growth. Acquired Calpine Corporation on January 7, 2026, bolstering its portfolio.
• NextEra Energy: Delivered 13% adjusted EPS growth in 2025, forecasting an 8% EPS CAGR over the next decade. Yields 2.4% with a 70% payout ratio, balancing dividends and reinvestment.

Lower payout ratios like Constellation's suggest flexibility for project funding, while NextEra's higher yield attracts income seekers. Regulatory hurdles, such as approvals for Duane Arnold, remain a watchpoint.

Why This Matters Now
AI's power hunger—think vast server farms training models like those powering ChatGPT—demands baseload energy that's carbon-free and always-on. Nuclear fits perfectly, sidestepping renewables' intermittency. With DOE backing and tech underwriting, this nuclear renaissance positions operators as hedges against energy crunches and market swings.

Analysts view these deals as pragmatic: Big Tech's direct investments signal confidence in nuclear's viability, potentially reshaping U.S. energy strategy for decades.