Microsoft taps Three Mile Island nuclear plant to power AI

Data centers powering AI models require vast energy, and major tech companies are turning to nuclear power to meet these demands. Microsoft has made a significant move by signing a deal with Constellation Energy to source energy for its data centers from the Three Mile Island Unit 1 nuclear plant. This plant, which is adjacent to the infamous TMI-Unit 2 that suffered a meltdown in 1979, was decommissioned in 2019 due to declining demand for nuclear energy. However, Constellation plans to invest $1.6 billion to revive the facility, with an expected operational date by 2028, pending regulatory approval.

Microsoft has agreed to purchase all the energy produced by the 835-megawatt plant for the next 20 years, though financial terms have not been disclosed. Once restored, the plant will be renamed the Crane Clean Energy Center (CCEC) in honor of Constellation’s late CEO, Chris Crane. The plant’s revival is projected to create 3,400 jobs and contribute $16 billion to Pennsylvania’s GDP.

Joe Dominguez, CEO of Constellation, highlighted nuclear energy’s reliability, stating it’s the only energy source capable of consistently powering critical industries, including data centers, with carbon-free energy around the clock.

Microsoft isn’t the only tech company eyeing nuclear energy. OpenAI’s CEO Sam Altman has advocated for nuclear power, and Amazon recently acquired a nuclear-powered data center in Pennsylvania for $650 million. As companies like Microsoft, Amazon, and Alphabet strive to transition to 100% renewable energy by 2030, the surge in AI demands has complicated their green energy goals.

A report in June revealed that the power consumption of future data centers could reach 508 terawatt-hours annually, exceeding Australia’s yearly electricity production. The growing demand for clean energy across industries, including electric vehicles and factories, has led to renewed interest in nuclear power. Investors are increasingly optimistic about nuclear fusion startups, which have raised $7.1 billion so far, offering a cleaner, more powerful alternative that relies on hydrogen fuel instead of uranium or plutonium.