Three Mile Island: Microsoft’s AI Power Solution

Microsoft has struck a deal to revive the Three Mile Island nuclear power plant, which was previously shut down. If approved by regulators, the tech giant would gain exclusive access to all the energy produced to support its AI data centers.

Constellation, the current owner of the Three Mile Island facility, announced a power purchase agreement with Microsoft, aiming to bring the plant back online by 2028, contingent on regulatory approval.

The reactor Microsoft intends to use was retired in 2019 for economic reasons and is adjacent to another unit that was closed in 1979 following the worst nuclear accident in U.S. history. The facility has the capacity to generate 837 megawatts of energy, enough to supply power to over 800,000 homes, highlighting the substantial energy demands of data centers and Microsoft’s AI initiatives.

This agreement marks Microsoft’s commitment to purchasing power from the plant, which will be renamed the Crane Clean Energy Center in honor of the late Chris Crane, former CEO of Exelon. This is a groundbreaking 20-year deal for the company.

As Microsoft’s greenhouse gas emissions rise due to its AI focus, this nuclear plant could help the company achieve its goal of running data centers on clean energy by 2025, supporting expansions in Chicago, Virginia, Pennsylvania, and Ohio.

Bobby Hollis, Microsoft’s vice president of energy, stated, “This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative.” He emphasized the company’s ongoing collaboration with energy providers to develop sustainable energy solutions.

Recently, Microsoft has been exploring next-generation nuclear technology to power its data centers and AI ambitions, having looked for plans for small modular reactors (SMR) last year. Co-founder Bill Gates believes that nuclear energy can play a significant role in addressing climate challenges.

Constellation plans to invest $1.6 billion to revive the plant and must secure approval from the Nuclear Regulatory Commission to restart operations, as well as obtain permits from local and state agencies. The company is also seeking a license renewal to extend the plant’s operational life until at least 2054.