Constellation Energy has announced plans to reopen the Three Mile Island nuclear plant to provide energy for Microsoft.
The power generated will be used exclusively to support Microsoft’s growing demand for clean, carbon-free energy to fuel its artificial intelligence operations.
A New Beginning for Three Mile Island
The move marks an extraordinary change for the plant.
The disaster occurred on March 28, 1979. A malfunction in the plant’s cooling system led to the partial meltdown of the reactor core.
Although no direct casualties were reported, the incident caused widespread public fear of radiation exposure and raised serious concerns about nuclear safety. The crisis prompted the evacuation of thousands and exposed flaws in communication and plant management.
It became a turning point in US energy policy. The disaster slowed the expansion of nuclear power and leading to stricter regulations in the nuclear industry.
The Unit 1 reactor of Three Mile Island, located near Harrisburg, Pennsylvania, has been inactive since its closure five years ago.
Constellation Energy revealed on Friday it expects to bring it back online by 2028. This is pending approval from the Nuclear Regulatory Commission (NRC).
Microsoft has committed to purchasing all the power produced by the plant under a 20-year agreement, which Constellation described as the largest in its history. However, the financial details of the deal remain undisclosed.
Constellation CEO Joe Dominguez said:
“Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise.”
Why Microsoft is Turning to Nuclear Power
As Microsoft expands its artificial intelligence capabilities, the tech giant requires a substantial and reliable energy supply to support its data centers.
Nuclear power offers a consistent, carbon-free solution that aligns with Microsoft’s sustainability goals.
Bobby Hollis, Microsoft’s vice president of energy, said:
“This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative.”
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The Role of Nuclear in the Clean Energy Transition
Nuclear energy has gained renewed interest among clean energy advocates and businesses as a dependable source of zero-carbon power.
Unlike wind and solar, nuclear plants can operate continuously. This means they can provide a stable and reliable energy supply regardless of weather conditions or time of day.
Alan Ahn, deputy director for nuclear at Third Way’s climate and energy program, said:
“When you’re talking about expanded power needs from artificial intelligence, data centers needing to run basically at full capacity for 24 hours a day, there’s not a lot of alternatives outside of nuclear.”
However, nuclear power has faced criticism for decades due to concerns over radioactive waste.
The US still needs a permanent repository for nuclear waste. This has resulted in the material being stored at over 70 operating and shuttered plants across the country.
Economic and Employment Impact
The reopening of the Three Mile Island Unit 1 reactor is expected to substantially impact the local economy.
It is likely to create 3,400 direct and indirect jobs and contribute more than $16 billion to Pennsylvania’s GDP.
The plant will also add over 800 megawatts of electricity to the grid, supporting both the state and Microsoft’s expanding AI operations.
Shares of Constellation (CEG) responded positively to the news, soaring over 16 percent in midday trading following the announcement.
The Influence of Biden’s Climate Bill
The revival of Three Mile Island is made possible by President Joe Biden’s climate bill, which includes billions in tax credits aimed at incentivizing clean energy, including nuclear, wind, solar, and clean hydrogen.
This federal support has also been instrumental in preventing the closure of older nuclear plants, allowing them to continue generating power as part of the nation’s clean energy mix.
Challenges and Opportunities for Reopening Shuttered Plants
Reopening a dormant nuclear plant is no small feat, as it requires rigorous regulatory approval.
Alan Ahn pointed out there isn’t much historical precedent for restarting a shuttered plant in the US, making the Three Mile Island revival an ambitious endeavor.
Similar efforts are underway, such as the reactivation of the Palisades nuclear plant in Michigan, which received over $1 billion in federal funding to prevent its closure.
A New Era for Tech and Nuclear Energy
The collaboration between Constellation Energy and Microsoft represents a growing trend of tech companies turning to nuclear power as they pursue carbon-neutral or negative goals.
The energy-intensive nature of data centers, particularly those supporting artificial intelligence applications, makes nuclear an attractive option for companies like Microsoft looking for stable, round-the-clock power.
Ahn said:
“It’s becoming fairly clear that tech companies are intently looking at nuclear.”
Looking Forward: A Milestone for Clean Energy and Tech
The reopening of Three Mile Island represents a significant shift in the narrative surrounding nuclear energy, transforming it from a symbol of disaster to a cornerstone of clean energy solutions.
By aligning with Microsoft’s AI ambitions, this project underscores the potential for nuclear power to support not just the energy needs of today, but also the technological advancements of tomorrow.
