Previously closed three miles nuclear plant finds new life as Microsoft's energy provider

Microsoft has struck a deal with Constellation Energy to revive the dormant nuclear reactor at Pennsylvania’s infamous Three Mile Island site to power its growing artificial intelligence (AI) data centers. The Three Mile Island facility is notorious for being the site of the worst nuclear meltdown in US history in 1979. However, the Unit 2 reactor, which suffered the meltdown, will remain decommissioned with the stakeholders opting to restore the adjacent Unit 1 reactor which was shut down in 2019 for economic reasons—will be reactivated.

"Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission," Joe Dominguez, Constellation’s president and CEO, said. The plant will be renamed the Crane Clean Energy Center in honor of Chris Crane, former chief executive of Constellation’s parent company.

The restart of Unit 1 is expected to add 835 megawatts of power to the Pennsylvania grid, create 3,400 jobs, and contribute at least $16 billion to the state’s economy, according to Constellation Energy.

Not that it’s going to be an easy task. Restoring the plant will require significant investment, including replacing key infrastructure such as the turbine, generator, and cooling systems. The US Nuclear Regulatory Commission will also need to conduct a full safety and environmental review before issuing a permit for the restart, which is expected in 2028. Constellation said it would seek licenses that will extend plant operations to at least 2054.

The news comes amid surging energy demands from tech companies like Microsoft, Google, Amazon, and Meta. According to Goldman Sachs, demand for data center power is expected to grow by 160% by 2030, with data centers potentially consuming 8% of the total power generated in the U.S. by that time.

And while this deal helps Microsoft secure a steady energy supply for its AI ambitions, it has also raised concerns about the environmental impact of the tech industry. A recent Guardian analysis suggests that the emissions from the data centers of Microsoft and other tech giants are significantly higher than reported, with estimates as much as 7x greater than official figures.