Microsoft to purchase power from Three Mile Island nuclear plant, operated by Constellation Energy.
- Constellation Energy plans to restart the Unit 1 reactor at Three Mile Island.
- Microsoft can support the power needs of data centers.
- The reactor that partially melted down in 1979 in the worst nuclear accident in U.S. history is separate from Unit 1.
Microsoft will purchase power from the restarted Three Mile Island nuclear plant, showcasing the tech sector's growing energy demands as they expand their data centers for AI.
The Unit 1 reactor at Three Mile Island is expected to be back online by 2028, pending Nuclear Regulatory Commission approval, according to Constellation.
In 2019, Unit 1 stopped operating due to the economic competition of nuclear power by cheap natural gas and renewables. Despite being separate from the reactor that partially melted down in 1979, it is still considered one of the worst nuclear accidents in U.S. history.
Microsoft has signed the largest power purchase agreement with the nuclear plant operator, with the aim of matching the energy consumed by its data centers with carbon-free power.
Constellation stock jumped nearly 7% in early trading.
The tech sector's increasing use of artificial intelligence is predicted to cause a rise in electricity demand, potentially overwhelming the power grid. In response, tech companies are seeking nuclear energy as a solution to meet their electricity needs while maintaining their environmental targets.
After purchasing a data center campus from a company in Pennsylvania, Constellation has announced plans to power the facility with a nuclear plant in the same state, marking a unique agreement.
The nuclear industry is seeing a resurgence of support from both the federal and state governments, following a decade of shutdowns.
The Palisades nuclear plant in Michigan has set the precedent for nuclear plant restarts in the US, with Three Mile Island being the second plant to follow suit and resume operations.
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