Microsoft and Constellation Energy have announced a partnership to restart a reactor at the Three Mile Island nuclear plant in Pennsylvania, which has been dormant since 2019. This 20-year power purchase agreement will provide energy for Microsoft’s data centers, helping meet growing power demands driven by artificial intelligence and other computing technologies.
The move is part of two broader trends: the increasing energy needs of data centers and the push to revive or extend the life of nuclear plants to meet zero-carbon energy goals. Three Mile Island’s Unit 1 reactor, which closed in 2019, will undergo a $1.6 billion revamp funded by Constellation. However, the project will still require regulatory approval.
This deal underscores Microsoft’s efforts to decarbonize its energy usage and become carbon-negative by 2030. Restarting Unit 1, located next to the reactor involved in the 1979 nuclear accident, will help the company power its AI growth while contributing to clean energy efforts.
Nuclear energy tax credits from the 2022 climate law are key to making this ambitious project financially viable. As data centers demand more power and the fight against climate change intensifies, nuclear energy is gaining renewed interest as a reliable zero-carbon energy source.