US Pursues Unprecedented Restart of Shuttered Nuclear Plants

The United States is undertaking an unprecedented effort to revive three nuclear plants that had been shut down, aiming to meet increasing energy demands, including those generated by large-scale data centers. This initiative marks a significant departure, as no commercial nuclear reactor is known to have resumed electricity generation after entering the decommissioning process, although some have restarted after extended outages.

The Department of Energy is providing substantial financial backing, up to $4.4 billion in loans, to restart the Palisades Power Plant in Michigan, the Crane Clean Energy Center on Pennsylvania's Three Mile Island, and the Duane Arnold Energy Center in Iowa. Collectively, these plants could restore 2.25 gigawatts of electricity, enough to power approximately 2 million homes and businesses. All three facilities ceased operations before their licenses expired, primarily due to the high cost of the electricity they produced.

Shifting Economic Landscape and Data Center Demand

However, the economic calculus has shifted. Two of the plants have secured contracts with major technology companies willing to pay a premium for significant amounts of carbon-free energy required for their data centers. This push aligns with broader political interests; the Trump administration has actively promoted nuclear power for artificial intelligence and manufacturing and is allocating billions of dollars for upgrades to existing nuclear plants to increase their output.

Nuclear engineering expert Todd Allen explained that restarting a decommissioned reactor offers a relatively rapid way to generate substantial electricity at a lower cost than constructing a new, large reactor. "There's a demand in the country for more power," Allen stated. "You have these assets that were previously hooked up. They were previously operable, and you can relatively quickly get them generating electricity again, compared to your other possibilities. For anyone who wants zero carbon, nuclear provides that. For the Trump administration, which really wants nuclear, this fits that story also."

Allen likened the process to restarting a car that has been idle for several years, emphasizing that all components must be functional and regulatory requirements met. For nuclear plants, this involves re-engaging and retraining nuclear workers, ensuring all systems are operational, performing necessary maintenance, securing fuel, and obtaining regulatory approval to restore operating licenses.

Safety and Regulatory Considerations

Despite the potential benefits, concerns remain regarding safety and the allocation of taxpayer funds. Edwin Lyman of the Union of Concerned Scientists suggested that public money should be directed toward addressing safety risks. He pointed out that many U.S. plants were designed to withstand natural disasters common in the late 20th century, but climate change is increasing the frequency and severity of extreme weather events. "It’s possible, if they set the right level of safety and spend the necessary funds to meet that, they could restore these plants to operable condition," Lyman said, expressing doubt that current efforts meet this standard.

Individual Plant Restart Efforts

The Duane Arnold Energy Center in Iowa, the state's sole nuclear facility, began operations in 1975 and was slated for permanent closure in October 2020. Its early shutdown in August 2020, due to damage from a severe storm, occurred before planned replacement with cheaper energy sources. NextEra Energy, the owner, expressed confidence in the plant's potential for restart.

The Palisades plant in Michigan operated from 1971 until 2022. Its owner, Entergy, departed the nuclear power business, and the plant began decommissioning. Holtec International acquired the facility, undertaking non-irreversible dismantling steps. Encouraged by Michigan officials seeking to retain nuclear jobs and energy, and supported by state funding, Holtec is pursuing the restart. The Biden administration approved a $1.5 billion loan in 2024, a commitment continued by the Trump administration.

Holtec has begun loading nuclear fuel at Palisades, a critical step towards resuming operations, although a temporary pause occurred due to a fuel assembly issue that the company is investigating. The plant's power purchase agreements mandate it be operational by March 2027. Holtec aims to restore baseload power, enhance energy security, and demonstrate nuclear energy's role in meeting national electricity demands. NextEra Energy and Google are collaborating to restart Duane Arnold by early 2029, with the project financed by long-term contracts with Google, ensuring no cost to residential customers.

At the Three Mile Island's Crane Clean Energy Center, Microsoft has a power purchase agreement. The plant, site of a 1979 accident, had one functioning reactor that Constellation Energy shut down in 2019 due to financial losses. Constellation announced in 2024 plans to invest $1.6 billion to restart the reactor under a 20-year agreement with Microsoft, targeting a 2027 operational date. The Energy Department provided a $1 billion loan for this project.

Diverse Perspectives on Federal Investment

Opinions on the federal investment vary. Jack Spencer of The Heritage Foundation criticized the use of taxpayer money for restarting reactors, arguing that the high demand for energy in these low-risk projects negates the need for federal subsidies. Conversely, Jennifer Gordon of the Atlantic Council views it as an effective use of federal financing to secure essential electricity, directing the council's Nuclear Energy Policy Initiative. The World Nuclear Association supports the celebration of reactor restarts but emphasizes that preventing premature closures would be a more optimal approach.

Palisades is anticipated to be the first nuclear plant globally to resume power generation after commencing decommissioning. Several other countries, including Canada, Armenia, Belgium, Japan, India, and South Korea, have restarted or refurbished reactors after prolonged shutdowns, with others considering similar actions.