Subhi Agrawal
America’s Three Mile Island energy plant, the site of the worst nuclear accident in U.S. history, is set to reopen as Microsoft seeks solutions to meet its increasing energy demands.
Microsoft Signs 20-Year Nuclear Power Deal
The tech giant announced it has signed a 20-year agreement to purchase power from the Pennsylvania plant, which is set to reopen in 2028 after upgrades.
The agreement aims to supply Microsoft with a clean energy source as its energy-intensive data centers for artificial intelligence (AI) continue to grow. The plan will now be submitted to regulators for approval.
The plant’s owner, Constellation Energy, stated that the reactor it intends to restart is adjacent to, but “fully independent” of, the unit involved in the 1979 accident.
While it resulted in no injuries or deaths, the incident instilled widespread fear and mistrust among the U.S. public, hindering the development of nuclear power in the country for decades.
However, renewed interest in nuclear energy is emerging as concerns about climate change intensify and companies require more power due to advancements in artificial intelligence.
Constellation CEO Joe Dominguez informed analysts on Friday that the deal was a “powerful symbol of the rebirth of nuclear power as a clean and reliable energy resource”.
“Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission,” he said in a statement.
He stated that nuclear plants are the “only energy sources” capable of consistently providing an “abundance” of carbon-free energy.
Microsoft’s Milestone Agreement
Microsoft described the agreement as a “milestone” in its efforts to “help decarbonize the grid.”
On March 28, 1979, a combination of mechanical failure and human error caused a partial meltdown at the nuclear power plant in central Pennsylvania.
The accident occurred around 04:00 in the second unit of the Three Mile Island plant.
The plant’s Unit 1, which is set to reopen under the Microsoft deal, continued to generate power until its closure in 2019.
At the time, Exelon, which later spun off Constellation as an independent company in 2022, stated that the low cost of natural gas extraction had rendered nuclear-generated electricity unprofitable.
Constellation announced it would invest $1.6 billion (£1.2 billion) to upgrade the facility and seek approval to operate it until at least 2054.
Reopening the plant would create 3,400 direct and indirect jobs and add over 800 megawatts of carbon-free electricity to the grid, generating billions in taxes and economic activity, according to a study by The Brattle Group cited by Constellation.
Local media reported earlier this month that news of the plant’s potential revival had attracted some protesters. Microsoft is not the only tech company turning to nuclear power to meet its growing energy demands.
Earlier this year, Amazon also signed a deal to purchase nuclear energy for powering a data center, and those plans are currently under regulatory review.
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