Three-Mile Island Nuclear Power Plant is resuming operations and transferring its electrical output to Microsoft
Nuclear energy company Constellation Energy revealed on Friday that their Unit 1 reactor, which shut down five years ago, is expected to return online in 2028, contingent upon approval from the Nuclear Regulatory Commission. Tech giant Microsoft has agreed to buy the carbon-free energy produced by the reactor to power its data centers and aid in artificial intelligence operations.
The financial details of the 20-year contract, which Constellation identified as the largest ever inked, were not disclosed.
Constellation CEO Joe Dominguez stated in a press release, "Powering industries essential to our nation's global economic and technological competitiveness, such as data centers, demands an abundance of energy that is carbon-free and consistently reliable, 24/7. Nuclear plants are the only energy sources capable of delivering on this commitment."
Advocates for clean energy and businesses alike are increasingly looking to nuclear energy as a source of zero-carbon power and a dependable baseload source. One significant advantage of nuclear power is its ability to remain operational around the clock, unlike renewable sources such as wind and solar.
However, nuclear energy has faced criticism from environmental groups for decades due to waste management issues. The United States has yet to establish a permanent repository for nuclear waste, instead storing it at over 70 active and inactive power plants scattered across the country.
The reactivation of Unit 1 is projected to create more than 3,400 direct and indirect jobs and add over 800 megawatts of electricity to the grid, as per Constellation. Additionally, it is anticipated to contribute roughly $16 billion to Pennsylvania's GDP, where the plant is located.
Shares of Constellation (CEG) surged by 7% in premarket trading.
Located near Harrisburg, Three Mile Island is famously known for experiencing the most severe accident at a commercial nuclear power plant in US history, with one of its reactors partially melting down. The adjacent Unit 2 reactor has remained offline since 1979 following the incident.
With tech companies requiring more sources of power to sustain their AI operations and meet their ambitious climate goals, energy demand is projected to rise significantly.
This move is also supported by President Joe Biden's climate bill, which includes billions in tax credits to motivation clean energy generation from nuclear, alongside wind, solar, and clean hydrogen. The Biden administration and Congress have also allocated billions in funds to prevent early closures of power plants scheduled for shutdown.
"This agreement represents a significant achievement in Microsoft's endeavors to help decarbonize the grid as we adhere to our commitment to achieve carbon negativity," Bobby Hollis, Microsoft's vice president of energy, noted in the press release.
- CNN's Ella Nilsen contributed to this report
The nuclear energy company, Constellation Energy, will sell its carbon-free energy to tech giant Microsoft, helping power their data centers and AI operations. This large-scale, 20-year contract, known as the largest ever inked by Constellation, will significantly boost the business sector by creating numerous job opportunities and contributing positively to Pennsylvania's economy.
