In a groundbreaking partnership, Constellation Energy and Microsoft have signed a power deal to resurrect Unit 1 of the iconic Three Mile Island nuclear plant in Pennsylvania. This ambitious project marks the first-ever restart of its kind, with the goal of providing clean and reliable energy to power Microsoft’s data centers.
The agreement is a significant response to the surging demand for electricity driven by the expansion of artificial intelligence and cloud computing technologies. Nuclear energy, being nearly carbon-free and more reliable than solar and wind power, has emerged as a preferred option for tech giants seeking uninterrupted power and committed to climate pledges.
Constellation Energy’s CEO, Joe Dominguez, emphasized the unique benefits of nuclear plants, stating, “Nuclear plants are the only energy sources that can consistently deliver on that promise.” The company’s shares have skyrocketed, rising over 20% to $251.42 and exceeding 100% growth this year.
The revived plant is expected to generate 835 megawatts of electricity, sufficient to power approximately 700,000 homes. Microsoft will purchase energy from the restarted plant for 20 years, supporting its commitment to become carbon negative. Bobby Hollis, Microsoft’s Vice President of Energy, hailed the agreement as a “major milestone” in the company’s decarbonization efforts.
However, the project still requires federal, state, and local approvals. Constellation has yet to file an application with the Nuclear Regulatory Commission (NRC), which will scrutinize the restart plan. The NRC spokesperson, Scott Burnell, noted that Constellation must provide justification for the restart, and the review process is expected to be completed by 2027.
Constellation plans to invest approximately $1.6 billion to revive the plant, targeting an online date of 2028. The company may seek federal support, similar to the $1.5 billion conditional loan granted to the Palisades Nuclear Generating Station.
Major tech executives, including OpenAI CEO Sam Altman and Microsoft co-founder Bill Gates, have endorsed nuclear energy as a solution to meet growing power demands. Altman chairs nuclear power startup Oklo, while Gates co-founded TerraPower, which broke ground on a nuclear facility in June.
The partnership between Constellation and Microsoft underscores the increasing collaboration between tech companies and nuclear energy providers. However, similar deals, such as the one between Talen Energy and Amazon, face scrutiny over potential cost spikes and grid reliability concerns.
