A previously inactive nuclear facility in Pennsylvania is set to be reactivated to meet Microsoft’s growing energy requirements.

On Friday, Microsoft and Constellation Energy revealed they had established a 20-year power purchase agreement, which will see one reactor at the Three Mile Island nuclear facility turned back on to cater exclusively to the energy demands of Microsoft’s extensive data centers that are integral to artificial intelligence operations.

The specifics of the financial arrangement were not disclosed by either company.

To restart the Unit 1 reactor at Three Mile Island, which was closed in 2019, regulatory approval from the U.S. Nuclear Regulatory Commission is required. Should this approval be obtained, the plant aims to resume operations by 2028.

Setting a precedent for nuclear energy

“Providing energy to crucial sectors of our nation’s economy, especially data centers, necessitates a substantial and reliable carbon-free energy supply available around the clock, and nuclear energy stands out as the best option for consistently meeting that demand,” stated Joe Dominguez, Constellation Energy’s president and CEO, in a Friday announcement.

Before its closure, the Three Mile Island plant had a generating capacity of 837 megawatts, capable of supplying power to over 800,000 households. Constellation Energy forecasts that once the reactor is operational again, it will generate over 800 megawatts of electricity for Microsoft, potentially contributing an additional $16 billion to Pennsylvania’s economy and creating around 3,400 direct and indirect jobs.

This would mark a first in the U.S., as no nuclear power plant has ever been restarted after being decommissioned, making the expected return of the Three Mile Island facility a significant milestone.

Background of the Three Mile Island incident

Three Mile Island, situated near Harrisburg, is notorious for the most severe nuclear accident in American history. In 1979, a mechanical failure led to a partial meltdown of its Unit 2 reactor, which has not been reopened since. Although the radiation released during this incident was minimal, it significantly eroded public trust in the nuclear industry.

A recent poll by Susquehanna Polling & Research indicated that residents of Pennsylvania support restarting Three Mile Island by a margin of more than two to one, according to a press release from Constellation Energy.

The recent surge in energy demand from tech companies, driven predominantly by data centers catering to artificial intelligence, has led companies to explore nuclear power solutions.

This year, Amazon Web Services revealed its intent to source energy from Talen Energy’s Susquehanna nuclear facility, further indicating a trend towards nuclear energy in the tech sector.

“This agreement plays a crucial role in Microsoft’s strategy to decarbonize the energy grid, aligning with our goal to achieve carbon negativity,” remarked Bobby Hollis, Microsoft’s Vice President of Energy, on Friday. “We are committed to working with energy providers to promote carbon-free energy sources to meet the electricity grid’s capacity and reliability requirements,”

Max Hauptman is a Trending Reporter for YSL News.