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Microsoft has signed a deal with one of the most infamous nuclear power facilities in the US as it looks for more ways to ensure the demand for AI computing is met.
The legacy of the Three Mile Island (TMI) nuclear plant has long been shaped by the 1979 Unit 2 meltdown, which had a profound effect on public perceptions of nuclear energy. What a lot of people don't know is that Unit 1 was not only unaffected, but continued to operate safely and reliably for decades.
Now, in a major new step, Constellation has signed its largest power purchase agreement with Microsoft, leading to the planned restoration and restart of TMI Unit 1 under the name Crane Clean Energy Center (CCEC). The project is expected to bring 835 megawatts of carbon-free power to the grid, create 3,400 jobs, and contribute over $3 billion in taxes.
Support for nuclear energy remains strong
Under this agreement, Microsoft will purchase the energy produced by the renewed plant to match the power consumption of its data centers within the PJM grid.
The tech giant has been exploring nuclear energy as a way to power its data centers for a while now, although this will be by far its most high profile deal.
"This agreement is a major milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative," noted Bobby Hollis, VP of Energy at Microsoft.
Joe Dominguez, President and CEO of Constellation, commented on the deal, saying, “Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise."
Before TMI Unit 1 can be restarted, it will undergo substantial modernization, including upgrades to the turbine, generator, and cooling systems. Approval from the US Nuclear Regulatory Commission will also be required, with plans to extend the plant’s operations through 2054. The plant is scheduled to come back online by 2028.
A report by The Brattle Group found that the Crane Clean Energy Center, renamed to honor former Constellation CEO Chris Crane, will not only add more than 800 megawatts of clean energy but also inject $16 billion into Pennsylvania’s GDP and generate $3 billion in taxes. Additionally, Constellation has committed $1 million over five years to support local workforce development and community programs.
Public support for nuclear energy remains strong in Pennsylvania, with a recent poll showing a 2-to-1 margin in favor of restarting TMI Unit 1. Governor Josh Shapiro praised the project, saying, “The Crane Clean Energy Center will safely utilize existing infrastructure to sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania’s legacy as a national energy leader.”
The resurgence of nuclear energy, particularly as a reliable, carbon-free power source for energy-intensive sectors like data centers, is increasingly appealing to firms like Microsoft and Oracle who are betting big on it.