In a groundbreaking move, Microsoft has signed a 20-year power purchase agreement with Constellation Energy to restart Unit 1 of the Three Mile Island nuclear plant in Pennsylvania. This deal aims to meet the growing energy demands of Microsoft’s data centers, driven by the rapid expansion of AI and cloud computing.
The Three Mile Island nuclear plant is infamous for the 1979 accident at Unit 2, which was the most severe nuclear accident in U.S. history. Unit 1, however, was shut down in 2019 due to economic challenges, despite being one of the safest and most reliable nuclear plants on the grid.
ESGToday reports that under the terms of the agreement, Microsoft will purchase all the electricity generated by the restarted Unit 1, which will provide approximately 835 megawatts of electricity – enough to power about 700,000 to 800,000 homes. The restart requires regulatory approvals from federal, state, and local authorities, with the plant anticipated to be operational by 2028 as Tomshardware reports.
Reuters reports that Constellation will invest about $1.6 billion to revive the plant, creating 3,400 direct and indirect jobs and injecting at least $16 billion into Pennsylvania’s economy. The plant will also generate more than $3 billion in state and federal taxes, making it an economic engine for the state.
“This deal is a significant step towards meeting our carbon reduction goals and ensuring a reliable, carbon-free energy source for our data centers,” said Microsoft’s Chief Environmental Officer, Lucas Joppa. “Nuclear energy plays a crucial role in decarbonizing the grid and supporting the growing demands of AI and cloud computing.”
The rapid expansion of AI and cloud computing has led to a significant increase in energy demand for data centers, with major tech companies seeking carbon-free energy sources. Microsoft, Google, Amazon, and Meta are among the companies investing in clean energy initiatives to power their data centers.
Before granting a permit for the reactor’s restart, the US Nuclear Regulatory Commission will conduct an extensive safety and environmental assessment. Unit 1 was known for its high reliability before its shutdown, operating at maximum capacity 96.3% of the time in its last year of operation.
The plant will be renamed the Crane Clean Energy Center in honor of Chris Crane, the former CEO of Constellation’s parent organization. This name change reflects the plant’s new identity and mission to serve as a clean energy source and economic engine for Pennsylvania.
The Microsoft-Constellation deal has the potential to impact the broader nuclear energy industry, as more tech companies seek reliable, carbon-free power sources for their data centers. This growing interest in nuclear energy could lead to similar deals between tech giants and nuclear power providers in the future.
