Constellation Energy Corp., the largest operator of nuclear reactors in the U.S., announced plans to restart the Three Mile Island Unit 1 reactor by 2028. The company had previously shut the reactor down in 2019 due to economic challenges. This marks a significant step for the nuclear industry, which has seen several closures in recent years as cheaper energy sources like natural gas and renewables took hold. Now, by securing a 20-year energy deal, Microsoft fuels AI using nuclear power to support its growing cloud infrastructure.
The plant’s restart comes with a 20-year energy supply agreement with Microsoft, which has agreed to purchase electricity exclusively from the reactor. This will be the first time Microsoft has secured energy from a dedicated nuclear facility.
Following the news, Constellation Energy saw its shares surge by 22%, setting an all-time high. The agreement with Microsoft also underscores the growing demand for reliable, carbon-free energy in the tech sector.
Microsoft is committed to powering its global data centers with clean energy by 2025 and reaching “carbon negative” status by 2030. The nuclear energy deal will supply power to its data centers in locations such as Chicago, Virginia, Pennsylvania, and Ohio. However, the company has yet to disclose which specific data centers will be powered by Three Mile Island.
Rising Power Demand for AI Drives Interest in Nuclear Energy
The surge in power demand, driven by data centers and AI systems, has renewed interest in nuclear energy, which can provide consistent power compared to intermittent sources like wind and solar. Data centers run around the clock, making them ideal customers for nuclear power, which operates continuously. With its global network of data centers, Microsoft fuels AI using nuclear power to maintain around-the-clock operations.
The partnership between Constellation and Microsoft is part of a broader trend among tech companies seeking to secure reliable, carbon-free energy sources. Earlier this year, Amazon announced a $650 million deal to acquire a data center campus connected to a nuclear plant in Pennsylvania.
Reactor Restoration: A $1.6 Billion Investment
Restarting Three Mile Island’s Unit 1 will require a $1.6 billion investment. Constellation plans to upgrade critical equipment, including the turbine, generator, and cooling systems. The plant will also need to be re-staffed and undergo approval processes with the U.S. Nuclear Regulatory Commission. The company also intends to extend the plant’s operating license through 2054 and rename it the Crane Clean Energy Center in honor of former Exelon CEO Chris Crane.
The project is one of only a few nuclear reactor restarts currently being considered in the U.S. While other companies like Holtec International and NextEra Energy have explored similar initiatives, industry experts note that restarting a nuclear facility is cheaper than building one from scratch.
Challenges
The rise of AI-powered systems like OpenAI’s ChatGPT, which operates on Microsoft’s cloud infrastructure, has driven the need for more energy. Now, in its efforts to meet climate goals, Microsoft fuels AI using nuclear power as a sustainable energy source.
One of the main challenges Constellation faces is connecting the plant to the grid, which is managed by PJM Interconnection LLC. Approval processes can be lengthy, but Constellation hopes the facility could be operational as early as 2027, depending on how quickly grid connections are approved.
Nuclear experts, such as Jacopo Buongiorno from MIT, believe the reactor’s restart is feasible, provided the equipment has been well-maintained. The U.S. government has previously supported similar projects, such as the Palisades nuclear plant restart in Michigan.
The announcement comes amid rising concerns about the reliability of the U.S. power grid. Over the past decade, a significant number of coal and nuclear plants have closed due to competition from cheaper energy sources. This has raised alarms about the country’s ability to meet growing power demand, especially from tech giants like Microsoft, Google, and Amazon.
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