Microsoft and Constellation Energy To Revive Three Mile Island Nuclear Plant

In a groundbreaking move, Microsoft and Constellation Energy have announced a 20-year power supply agreement that will lead to the reopening of the Three Mile Island nuclear plant in Pennsylvania. This marks a significant moment in the energy sector, as it is the first instance in the U.S. of a nuclear facility being brought back online after being decommissioned. Constellation plans to restart Unit 1 of the plant, which has been closed since 2019, with expectations to generate more than 800 megawatts of energy by 2028.

We’re restarting Three Mile Island Unit 1 as the new Crane Clean Energy Center! Through a 20-year agreement, Microsoft will use the energy from the renewed plant to help match the power its PJM data centers use with carbon-free electricity. 🧵
More info⬇️https://t.co/NfKGdJgMA0 pic.twitter.com/z9ydxDXw1U
— Constellation (@ConstellationEG) September 20, 2024

“The decision here is the most powerful symbol of the rebirth of nuclear power as a clean and reliable energy source,” stated Joe Dominguez, President and CEO of Constellation, during a call with investors.

Addressing Energy Demand

The resurgence of interest in nuclear power comes in response to a dramatic increase in electricity demand, particularly driven by the rapid growth of artificial intelligence (AI) technologies and cloud computing. Microsoft has faced challenges in meeting its escalating energy needs while adhering to its climate goals. Bobby Hollis, Microsoft’s Vice President of Energy, emphasised that this deal represents a major milestone in the company’s commitment to decarbonise its operations.

The announcement comes 5 years to the day Unit 1 shut down
— Office of Nuclear Energy (@GovNuclear) September 20, 2024

“This agreement is a major milestone in Microsoft’s efforts to help decarbonise the grid in support of our commitment to become carbon negative,” said by Bobby Hollis.

Economic Implications

The revival of the Three Mile Island plant is projected to create approximately 3,400 jobs and generate around $3 billion in taxes, according to a study funded by the Pennsylvania Building & Construction Trades Council. Constellation plans to invest approximately $1.6 billion in the project, which will be supported by federal subsidies under the 2022 Inflation Reduction Act. However, the deal still requires several regulatory approvals before moving forward.

Mixed Reactions and Concerns

While the deal has been met with enthusiasm from some, it has also raised concerns among nuclear safety advocates and community leaders. Critics argue that using public subsidies for the project could lead to increased costs for ratepayers. Henry Sokolski, a former deputy for nonproliferation policy at the Pentagon, expressed scepticism about the implications of the deal, stating, “Microsoft says it will buy all of the nuclear electricity from Three Mile Island but it wants rate and taxpayers to pick up the tab to refurbish the plant.”

Additionally, concerns regarding the monopolisation of clean energy resources have emerged. Sasha Luccioni, the climate executive at sustainable AI start-up Hugging Face, cautioned against the dominance of a single company in acquiring energy resources.

Conclusion

The partnership between Microsoft and Constellation Energy to revive the Three Mile Island nuclear plant signifies a pivotal shift towards nuclear energy as a viable solution to meet the growing electricity demands of the tech industry. As regulatory hurdles are navigated and public sentiment is considered, this unprecedented deal could reshape the future landscape of energy consumption, especially in the context of sustainable technological advancement.