Microsoft goes nuclear for its energy-hungry data centers, while betting on infamous Three Mile Island station power for its AI ambitions
Microsoft has signed a deal with one of the most notorious nuclear power plants in the US as it looks for more ways to ensure demand for AI computing is met.
The legacy of the Three Mile Island (TMI) nuclear power plant has long been shaped by the Unit 2 meltdown in 1979, which had a profound effect on public perception of nuclear power. What many people don’t know is that Unit 1 not only remained untouched, but also continued to operate safely and reliably for decades.
Now, in a significant new step, Constellation has signed its largest power purchase agreement with Microsoft, leading to the planned restoration and restart of TMI Unit 1 under the name Crane Clean Energy Center (CCEC). The project is expected to deliver 835 megawatts of carbon-free energy to the electric grid, create 3,400 jobs and contribute more than $3 billion in taxes.
Support for nuclear energy remains strong
Under this agreement, Microsoft will purchase the energy produced by the renovated factory to match the power consumption of its data centers within the PJM network.
The tech giant has been exploring nuclear energy as a way to power its data centers for some time, although this will be by far the most high-profile deal.
“This agreement is an important milestone in Microsoft’s efforts to decarbonize the power grid, supporting our commitment to becoming carbon negative,” said Bobby Hollis, VP of Energy at Microsoft.
Joe Dominguez, president and CEO of Constellation, commented on the deal, saying: “Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable, every hour of the day. and nuclear power plants are the only energy sources that can consistently deliver on this promise.”
Before TMI Unit 1 can be restarted, it will undergo significant modernization, including upgrades to the turbine, generator and cooling systems. Approval will also be needed from the US Nuclear Regulatory Commission, with plans to extend the plant’s operations until 2054. The plant is scheduled to be operational again in 2028.
A report from The Brattle Group shows that the Crane Clean Energy Center, renamed in honor of former Constellation CEO Chris Crane, will not only add more than 800 megawatts of clean energy, but also $16 billion in Pennsylvania’s GDP will inject and generate $3 billion in taxes. In addition, Constellation has committed $1 million over five years to support local workforce development and community programs.
Public support for nuclear power remains strong in Pennsylvania, with a recent poll showing a 2-to-1 margin in favor of restarting TMI Unit 1. Governor Josh Shapiro praised the project, saying, “The Crane Clean Energy Center will use existing infrastructure safely. to sustain and expand nuclear energy in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania’s legacy as a national energy leader.
The revival of nuclear energy, especially as a reliable, carbon-free energy source for energy-intensive sectors such as data centers, is increasingly attractive to companies like Microsoft and Oracle that are betting big on it.