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Microsoft has signed a 20-year deal with Constellation Energy to purchase power from the Three Mile Island nuclear plant in Pennsylvania, which is set to reopen in 2028 after improvements. The agreement aims to provide Microsoft with a clean energy source for its expanding, power-hungry artificial intelligence (AI) data centers. The plan is now awaiting regulatory approval.
The Three Mile Island plant, infamous for a partial meltdown in 1979, has been dormant since 2019. The reactor set to restart is adjacent to, but "fully independent" of, the unit involved in the 1979 accident, according to Constellation Energy. The accident, the worst in US history, caused no injuries or deaths but led to widespread fear and mistrust among the US public.
The revival of the plant symbolizes a broader resurgence of interest in nuclear energy, driven by increasing energy demands and climate change concerns. Tech companies, facing surging power needs for artificial intelligence and data centers, are turning to nuclear energy as a carbon-free, reliable power source.
Constellation Energy will invest $1.6 billion to upgrade the facility, which it will seek approval to operate through 2054. The reopening of the plant is expected to create 3,400 direct and indirect jobs and add more than 800 megawatts of carbon-free electricity to the grid, generating billions of dollars in taxes and other economic activity.
Microsoft's commitment to the power purchase agreement is part of its goal to run all its global data centers on clean energy by 2025 and become carbon-negative by 2030. Bobby Hollis, Microsoft’s Vice President for Energy, emphasized the partnership’s role in the company’s goal to achieve carbon negativity by 2030.
However, the project faces several challenges, including regulatory approvals, equipment refurbishment, and staffing. Some local residents and environmental groups remain opposed to the reopening, citing safety concerns and memories of the 1979 accident.