Alphabet’s (GOOGL) Google and NextEra Energy (NEE) have disclosed plans to restart the Duane Arnold Energy Center, Iowa’s only nuclear power plant, by early 2029. With this move, the companies aim to support Google’s rising energy demand from artificial intelligence (AI) and cloud computing in the region.
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Key Terms of the Deal
Under a new 25-year power purchase agreement, Google will buy electricity from the plant, while Central Iowa Power Cooperative will purchase the remaining output.
Also, NextEra has acquired the remaining 30% ownership stake from Central Iowa Power Cooperative and Corn Belt Power Cooperative, giving it full control of the facility.
The plant, which was shut down in 2020, will deliver over 600 megawatts of clean nuclear energy, enough to power Google’s growing infrastructure in the Midwest.
Economic Boost and Clean Energy Goals
The move is expected to create 400 full-time jobs and deliver over $9 billion in economic benefits to Iowa. During construction, the project is expected to support more than 1,600 jobs across the state.
Moreover, NextEra and Google have signed a separate agreement to explore new nuclear development in the U.S. This builds on their existing partnership, which now includes nearly 3 gigawatts of energy projects nationwide.
The Duane Arnold restart still requires regulatory approval, and NextEra is working closely with the Nuclear Regulatory Commission and other authorities to move the project forward.
What Is the Target Price for Google Stock?
On TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 28 Buys and eight Holds assigned in the last three months. The average Alphabet stock price target is $267.53, suggesting a downside risk of 0.65% from the current level.
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Is NEE a Buy or Sell?
On TipRanks, NextEra stock has a Moderate Buy consensus rating based on nine Buys and four Holds assigned over the past three months. Also, the average NEE price target of $91.31 suggests a 6.14% upside potential.
