Microsoft’s billion-dollar plan to reopen Three Mile Island for AI data centers
Constellation Energy has agreed to restart a reactor on Three Mile Island and will supply the vast majority of the power to Microsoft to support its data centers.
Three Mile Island in Dauphin County, Pennsylvania, is the site of the partial nuclear meltdown that happened in 1979. However, the energy company will reopen the Unit 1 reactor, which did not melt down but rather closed in 2019.
CNBC reported that Constellation will invest $1.6 billion in restarting the plant through 2028, and it is expected to remain open until 2054. The plant will be called the Crane Clean Energy Center after the company’s deceased CEO, Chris Crane.
Microsoft will purchase energy from the plant in a 20-year deal in order to power its artificial intelligence and data centers with what is being described as carbon-free power. This will occur despite criticisms from environmental activists who have shunned nuclear energy due to its waste.
Microsoft founder Bill Gates even has a green energy company called Breakthrough Energy; however, green energy would not have the capacity required for Microsoft’s data centers.
‘The decision here is the most powerful symbol of the rebirth of nuclear power as a clean and reliable energy resource.’
Energy reporter Mark Nelson claimed in a post on X that Microsoft will pay approximately $800 million per year across the 20-year deal, for a total of $16 billion spent on energy.
According to the Tokenist, the agreement also states that Constellation will provide Microsoft with about 835 megawatts of power, the largest purchase Microsoft has ever made for energy. This represents almost all of the Unit 1 reactor’s capacity, which Constellation said had a ceiling of 837 megawatts before it was shut down.
While this is enough power to feed more than 800,000 homes, Microsoft will essentially have its own nuclear plant to energize its data centers.
“The decision here is the most powerful symbol of the rebirth of nuclear power as a clean and reliable energy resource,” said Constellation CEO Joe Dominguez. “In this rebirth, we see the most powerful sign that America will turn to the enduring promise of nuclear energy, an old and loyal ally that is renewed and ready to light the way forward.”
CNN reported that the reactor’s reopening will create about 3,400 jobs and add another $16 billion to the Pennsylvania economy, which pleased local politicians.
“This will transform the local economy and presents a rare opportunity to power our economy with reliable clean energy that we can count on,” said state Rep. Tom Mehaffie (R); the plant is in his district. “This is a rare and valuable opportunity to invest in clean, carbon-free and affordable power — on the heels of the hottest year in Earth’s history.”
Constellation’s stock jumped about 15% or about $30 per share after the news broke.
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