Microsoft signs 20-year deal to reopen Three Mile Island nuclear plant

Microsoft has entered into a 20-year agreement to purchase power from the Three Mile Island nuclear plant in Pennsylvania, a site historically known for the worst nuclear accident in U.S. history.

The plant is slated to reopen in 2028 following extensive improvements. This move is aimed at securing a clean energy source to meet the growing power demands of data centers supporting artificial intelligence (AI).

Constellation Energy, the owner of the plant, stated that the reactor set to be restarted is independent of the unit involved in the 1979 accident. This infamous incident resulted in a partial meltdown but caused no fatalities, although it significantly dampened public trust in nuclear energy for decades. However, with increasing concerns about climate change and the need for carbon-free energy, interest in nuclear power is being revived.

Joe Dominguez, CEO of Constellation Energy, highlighted the importance of nuclear power as a consistent and reliable source of carbon-free energy. He referred to the reopening as a “powerful symbol of the rebirth of nuclear power” and mentioned that the plant was once one of the safest and most reliable on the grid.

Microsoft hailed the agreement as a “milestone” in its efforts to decarbonize the grid and reduce its carbon footprint. The reopened plant, expected to generate over 800 megawatts of carbon-free electricity, will play a crucial role in powering Microsoft’s data centers.

Constellation plans to invest $1.6 billion to upgrade the facility and aims to extend its operations until at least 2054. The revival of the plant is anticipated to generate 3,400 direct and indirect jobs, along with substantial economic benefits for the region.

This deal aligns with a broader trend of tech giants like Amazon and Google turning to nuclear power as a sustainable solution to meet their expanding energy needs. As the AI revolution continues, data centers are requiring more 24/7 energy, with nuclear power emerging as a key carbon-free resource.