NextEra Energy Expands Gas and Nuclear Generation Amid Rising AI Demand
NextEra Energy Inc., a leading global wind and solar power provider, is expanding its natural gas and nuclear generation capacity to meet the surging electricity demand driven by artificial intelligence (AI).
In partnership with GE Vernova Inc., NextEra plans to construct power generators for data centers and factories. The company has also initiated the process of restarting its Duane Arnold nuclear plant in Iowa.
US power consumption is accelerating due to data center expansion, AI adoption, and the electrification of the economy. This has increased the demand for new gas plants and revitalized interest in nuclear energy.
"We aim to serve large-load customers with a holistic approach, integrating gas-fired generation, renewables, and battery storage," said NextEra CEO John Ketchum.
NextEra shares rose significantly in New York, reflecting investor optimism. The company's subsidiary, NextEra Energy Resources, highlighted the substantial increase in demand for natural gas.
GE Vernova, a gas turbine manufacturer, indicates that data centers prefer gas over intermittent renewable sources due to their round-the-clock power needs.
NextEra has formally requested a licensing change for the Duane Arnold nuclear plant, marking the first step towards its potential reactivation. The plant is expected to resume operations by late 2028.
Other utilities, including Santee Cooper and Constellation Energy Corp., are also pursuing reactor revitalization.
The Duane Arnold plant, closed in 2020, utilized less-complex technology, potentially easing its reactivation compared to newer facilities. However, analysts caution that the cost and economic viability of its restoration remain uncertain.