Constellation Energy has announced plans to reopen the Three Mile Island nuclear plant in Pennsylvania in order to meet Microsoft’s increasing energy demands while reducing emissions. The companies have entered into a 20-year power supply agreement, which will involve reopening Unit 1 of the facility that was closed in 2019. This marks the second reopening of a nuclear plant in the United States.
The decision to reopen Three Mile Island’s Unit 1 is seen as a significant symbol of nuclear power’s resurgence as a clean and reliable energy source, according to Constellation CEO Joe Dominguez. Nuclear power has experienced a revival in recent years due to its ability to provide round-the-clock carbon-free electricity, addressing the need for emission reduction and meeting growing energy requirements.
Big Tech companies like Microsoft have been grappling with how to meet their escalating power demands from artificial intelligence infrastructure while adhering to climate targets. Microsoft recently reported that its emissions had increased by almost one-third since 2020. To combat this, Microsoft has set ambitious climate goals such as becoming “carbon negative” and achieving “zero waste” by 2030.
Under the new agreement, Microsoft will purchase all of the more than 800MW of power generated by Three Mile Island over the next two decades. The restarted plant is expected to begin operations in 2028 and remain operational until at least 2054. However, specific details about which Microsoft facilities will receive this output have not been disclosed.
The facility will be renamed the Crane Clean Energy Center after Constellation’s former CEO Chris Crane. Shares in Constellation rose by 14% following Friday’s announcement.
This development follows another project aiming to restart a decommissioned reactor in Michigan later this year. Holtec International plans on reopening the Palisades nuclear plant, which was closed down last year.
With its fleet of 94 reactors providing nearly one-fifth of its electricity supply, the United States possesses the largest national nuclear fleet globally. In an effort to promote emissions-free power generation, subsidies are being offered by the Department of Energy for aging plants that were scheduled for decommissioning.
As electricity demand surges due to emerging technologies like AI and electric vehicles, concerns about grid stability have arisen. The North American Electric Reliability Corporation (NERC) has significantly increased projections for peak power demand over the next decade compared with previous years’ growth rates.
