Microsoft has signed an agreement with a major US power supplier to revive a nuclear power plant that had been shut down to power its AI projects and data centers. The power plant in question, Three Mile Island, is located in Middletown, Pennsylvania, and is recognized as the scene of the worst commercial nuclear accident in US history.
Constellation Energy, which claims it is recognised as the largest producer of clean, carbon-free energy in the United States, announced the deal, describing it as its largest-ever power purchase agreement. The arrangement underscores the importance of reliable and carbon-free energy in supporting industries critical to technological advancements, such as AI and data storage.
Nuclear energy is viewed as a unique solution to the energy demands of the tech sector, mainly because of AI. Unlike fossil fuel-based alternatives, it offers a consistent and carbon-free power supply.
The Three Mile Island plant, which will be renamed the Crane Clean Energy Center in memory of Chris Crane, a former CEO of Constellation’s parent company, is expected to be operational again by 2028.
The 20-year agreement is anticipated to generate approximately 3,400 jobs, contribute over $3 billion in state and federal taxes, and add $16 billion to Pennsylvania’s GDP.
The plant’s return to service significantly boost Pennsylvania’s economy and its role in the national energy landscape. Governor Josh Shapiro highlighted the critical role of the state’s nuclear energy industry in providing safe, reliable, and carbon-free electricity.
The revival of the plant aligns with efforts to reduce carbon emissions and promote sustainable energy sources, distinguishing nuclear power as a vital component of the nation’s energy strategy.
However, the decision to reopen the Three Mile Island facility has been controversial. The plant, which was shut down in 2019 after it failed to compete with cheaper energy sources, has a fraught history. The partial meltdown of its No. 2 reactor in 1979 marked the most severe nuclear accident in US commercial history, leading to stringent new regulations and halting the growth of the nuclear sector.
Despite assurances that the reactor being reopened was not involved in the 1979 accident, concerns remain among local activists. Some have questioned whether the investment in reviving the plant is the best use of public funds, especially given the market’s previous decision to move away from nuclear energy. Critics argue that reopening the plant should be weighed carefully against other potential investments in cleaner, more sustainable energy sources.
This move by Microsoft reflects a broader trend within the tech industry to secure stable, long-term energy sources to meet the growing demands of AI and data processing. Notably, former Microsoft CEO Bill Gates has also invested heavily in nuclear energy, supporting the construction of a new plant in Wyoming aimed at powering both homes and AI systems.
As Microsoft and Constellation Energy forge ahead with this ambitious project, the revival of Three Mile Island underscores the ongoing debate over the future of nuclear power in a world increasingly focused on sustainability and carbon reduction.
