Renewables Leader NextEra Expanding Gas, Nuclear for AI Boom

(Bloomberg) — NextEra Energy Inc., one of the world’s biggest suppliers of wind and solar power, is moving to expand its natural gas and nuclear generation in a bid to meet the surging demand for electricity sparked by artificial intelligence.

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The company has partnered with gas turbine manufacturer GE Vernova Inc. to build power generation for data centers and factories, Chief Executive Officer John Ketchum said on an earnings call Friday. NextEra has also taken the first step to restarting its shuttered Duane Arnold nuclear plant in Iowa.

US power consumption is rising, driven by data centers and AI, along with manufacturing and the increasing electrification of the economy. That’s spurred demand for new gas plants and reawakened interest in nuclear energy. The electricity boom has sparked new ideas and deals that would once have been unthinkable.

“We’re already having a lot of success with renewables, but let’s capitalize on the need for capacity and gas generation,” Ketchum said in an interview. By partnering with GE Vernova, “we can find multi-gigawatt solutions for these customers, not just gas but combined with renewable solutions,” he said.

Ketchum also said that strategy will be helped by the Trump administration’s strong support for gas power.

NextEra shares gained as much as 5.8% in New York. The company also owns Florida Power & Light, one of the largest US utilities.

“It can’t be underestimated how much this industry has changed in a very short amount of time, really the last 15 months to 18 months,” Rebecca Kujawa, head of subsidiary NextEra Energy Resources, said on the call. “We’ve seen a lot of increase in demand for natural gas.”

GE Vernova has said data centers favor gas over intermittent renewable sources like wind because the facilities require power around the clock. Scott Strazik, GE Vernova’s CEO, said this week that orders for gas turbines more than doubled to 20 gigawatts last year and he expects 2025 to be even stronger.

NextEra has asked US regulators for a licensing change for the Duane Arnold nuclear plant, a first step toward potentially restarting the Iowa facility.

NextEra aims to get the reactor up and running again as early as the end of 2028, it said Friday in an earnings release. “This is much faster than we and investors we speak to expect,” Jefferies LLC analysts led by Julien Dumoulin-Smith said in a note.

The request was filed with the Nuclear Regulatory Commission on Thursday, according to a company representative. NextEra had previously said it was interested in reviving the plant.

NextEra is not the only company pursuing efforts to revive reactors. South Carolina utility Santee Cooper said Wednesday it’s seeking bids to restart construction of two reactors at the V.C. Summer Nuclear Station. And in September, NextEra rival Constellation Energy Corp. announced plans to restart a reactor at the Three Mile Island plant in Pennsylvania to supply Microsoft Corp.

The 600-megawatt Duane Arnold plant closed in 2020 after its biggest customer decided to exit its power-purchase agreement. The facility was also damaged in a windstorm that same year, prompting the company to close the plant two months earlier than planned.

NextEra has said Duane Arnold, which went into service in 1974, uses less-complex technology that may make it easier to revive than newer nuclear plants. But Jefferies & Co. analyst Julian Dumoulin-Smith has said bringing the facility back into service would be costly and there’s no guarantee the economics would be justified.

(Updates with comment from CEO in fourth paragraph, comment from analyst in 10th paragraph.)