Massive data centers

 Iowa is emerging as a magnet for massive data centers owned by Google, Meta, Microsoft, and Apple—companies that have invested over $17 billion statewide, according to the Iowa Economic Development Authority. But officials and energy experts warn that growing electricity demands could outpace capacity and strain water resources, especially as artificial intelligence and cryptocurrency mining expand.A newly obtained draft bill from Gov. Kim Reynolds appears to pave the way for a nuclear comeback in Iowa—an old solution returning just as momentum builds to restart the state’s only nuclear plant.

NextEra Energy, which operates the shuttered Duane Arnold nuclear facility near Palo, confirmed to Iowa’s News Now that it has filed notice with the Nuclear Regulatory Commission to request a licensing change that could allow Duane Arnold to restart by 2028.

“Resuming operations at an idled nuclear plant requires a comprehensive evaluation, and many factors need to be considered,” NextEra spokesman Bill Orlove said in a statement. 

The potential revival of Duane Arnold—once producing 600 megawatts—comes as data centers consume vast amounts of electricity to power servers and cool equipment. University of Iowa engineering professor Jerry Schnoor said some of Iowa’s current data centers use about a million gallons of water per day, a figure large enough to concern communities already monitoring aquifer depletion.

Iowa’s new draft legislation underscores the urgency to “ensure an adequate base load” of power. It specifically promotes nuclear reactors as part of a broader strategy: “It is also the intent of the general assembly to encourage the development of nuclear electric power generation within the state using nuclear reactors and to use nuclear power to meet local and regional electric needs,” the bill reads.

Critics highlight the risk that utility customers could end up footing the bill. 

Schnoor believes nuclear can be the clean baseload Iowa needs to replace fossil fuels.

“We’re making parts of the planet uninhabitable,” he said. “Fossil fuel emissions have to go to zero in the next few decades. Therefore, I would pursue nuclear.”

“Independent of the data centers, nuclear seems to be one of the logical ways of providing a clean source of baseline energy generation, Nuclear always has some risks, but all energy generation has some risk. Once again, the issue is, do we think technologically that we can mitigate that risk?”

Google alone has invested $5.5 billion in Council Bluffs and is building another $576 million campus in Cedar Rapids, while Microsoft operates six data centers in West Des Moines. Meta (Facebook’s parent company) has a $2.5 billion data center in Altoona. Stacey Yip, a company spokesperson, told Iowa’s News Now Meta’s “electricity use is matched with 100% renewable energy,” adding that its “global operations have reached net zero emissions.” Apple, who a $1.3 billion data center in Waukee said it uses “zero water for cooling” opting for air-cooled chillers, according to spokesperson Chloe Sanchez Sweet.

Yet not all rely on air cooling. Many Iowa centers depend on groundwater for evaporative cooling.

“They usually use groundwater, and the groundwater is rather plentiful in Iowa compared to other states, but there are places where it’s in danger from over-pumping,” Schnoor warned.

Meanwhile, cryptocurrency miners have added another layer of demand. A single Bitcoin mining site operated by MiningStore in Grundy Center uses more electricity than all the town’s homes combined. Martin-Schramm noted that “there is so much data processing that is happening, and you need electricity to power those chips” and that “now with Bitcoin recently at record highs, the folks engaging in Bitcoin mining or getting into it are increasing.”

Orazem thinks consumers will “one way or another bear the cost,” whether from higher electricity rates or indirect fees. “If the private company has to generate more electricity, they’ll only do that if they’re going to get a return on that investment that could potentially be spread to all the customers,” he said. He added that “Iowa is a regulated industry, but if we’re not getting charged for the electricity, we’re going to get charged by the data centers for accessing that service.”