Key Points
- NextEra Energy will build new power plants exclusively for Google’s AI data centers.
- The deal is driven by a massive surge in electricity demand from the AI industry that the existing grid cannot handle.
- NextEra is restarting a closed nuclear power plant in Iowa, specifically to supply power to Google.
- The company is also planning new natural gas plants to meet the immediate needs of data centers.
Utility giant NextEra Energy is expanding its partnership with Google Cloud to build dedicated power supplies for the tech company’s energy-hungry operations across the United States. The deal highlights how the artificial intelligence boom is forcing Big Tech to find new ways to power its massive data centers.
The demand for electricity to train and run AI models is surging to record highs, and the existing power grid simply can’t keep up. In response, tech companies are now striking deals to build their own power sources from the ground up. “We are positioning our company around bring-your-own-generation,” said NextEra CEO John Ketchum, adding that his company is “uniquely positioned to win this.”
As part of the new agreement, the two companies will develop large-scale data center campuses alongside brand-new power plants. This is a significant expansion of their current partnership, which already includes 3.5 gigawatts of power.
The energy sources are notable. In a move that signals a major shift, NextEra is restarting its closed Duane Arnold nuclear power plant in Iowa specifically to power Google’s data centers. The company also said it expects to announce new deals for natural gas-fired power plants within the next 1 to 2 years to meet immediate demand.
This trend extends beyond Google. NextEra also announced it has signed new agreements to provide over 2.5 gigawatts of power and energy storage to Meta. Thanks to this surging demand, NextEra raised its profit forecast for the coming years.
