Constellation Energy plans to restart the Three Mile Island nuclear plant in Pennsylvania to meet Microsoft’s growing energy needs for AI-driven data centers. The company will spend $1.6 billion to reopen the plant, which has been inactive since 2019. It should be up and running again by 2028.
The plant’s 837-megawatt reactor, which can power 700,000 homes, will be refurbished and renamed the Crane Clean Energy Center. Microsoft has signed a 20-year agreement to buy all of the plant’s electricity to power its data centers in the Midwest and East Coast. This will be Microsoft’s first nuclear-powered facility.
Three Mile Island is known for the partial meltdown in 1979, which led to the worst nuclear accident in U.S. history. That accident happened in Unit 2, which is now being dismantled. However, the other reactor at the site continued running safely until it closed in 2019 due to financial issues.
Restarting the Three Mile Island plant is part of a bigger movement toward nuclear energy. Constellation’s CEO, Joseph Dominguez, said, “This was the site of the industry’s greatest failure, and now it can be a place of rebirth.”
The decision to restart the plant comes as more companies are turning to nuclear power due to rising energy needs and concerns about climate change. Tech companies, like Microsoft, need more power for their AI systems and data centers, and they see nuclear energy as a reliable, carbon-free solution.
This project fits with Microsoft’s goal of using 100% clean energy by 2025 and becoming carbon negative by 2030. Microsoft is also working on other clean energy sources like wind, solar, and hydro power. The company’s energy strategy is focused on using different types of clean energy to meet its needs.
Bobby Hollis, Microsoft’s Vice President for Energy, said, “This nuclear energy will fuel our data-center expansion in key regions, supporting our AI-driven initiatives with reliable, clean power.”
There are challenges to reopening the plant, like getting regulatory approvals, fixing equipment, and hiring staff. Constellation will replace the main power transformer and repair the turbines and cooling systems. They will pay for the project themselves, without state or federal help, to speed things up.
| Detail |
Description |
| Plant Name |
Three Mile Island (renamed Crane Clean Energy Center) |
| Reactor Unit |
Unit 1 |
| Power Generation Capacity |
Approximately 837 megawatts |
| Energy Supply |
Powering Microsoft’s data centers |
| Projected Restart Year |
2028 |
| Job Creation |
Over 3,000 jobs |
| Economic Impact |
Estimated $16 billion contribution to Pennsylvania's GDP |
| Tax Revenue |
More than $3 billion in state and federal taxes |
| Investment for Upgrades |
$1.6 billion |
| Historical Context |
Site of the 1979 partial meltdown; first U.S. nuclear plant to restart after decommissioning |
Some local residents and environmental groups are still concerned about safety because of the 1979 accident. However, Pennsylvania lawmakers are excited about the economic and environmental benefits. State representative Tom Mehaffie said, “This will transform the local economy and presents a rare opportunity to power our economy with reliable clean energy.”
As demand for AI services grows, companies like Microsoft and Amazon are turning to nuclear power to meet their clean energy goals. This trend could help revive the nuclear energy industry, which has seen many plant closures in recent years.
As the project moves forward, it’s likely to spark more debates about the role of nuclear power in fighting climate change and meeting the energy needs of tech companies.
Key Details of the Agreement
Energy Production: The Three Mile Island plant's Unit 1 reactor is projected to generate approximately 837 megawatts of carbon-free electricity, enough to power around 800,000 homes. This energy will be sold to Microsoft under a 20-year agreement aimed at helping the company meet its carbon-free energy goals.
Economic Impact: The reopening is anticipated to create over 3,000 jobs and contribute approximately $16 billion to Pennsylvania's GDP. Additionally, it is expected to generate more than $3 billion in state and federal taxes.
Renaming and Investment: The plant will be renamed the Crane Clean Energy Center in honor of former CEO Chris Crane. Constellation plans to invest $1.6 billion in upgrades and refurbishments necessary for the reactor's restart.
Context and Significance
This move marks a significant shift in the nuclear energy landscape in the U.S., as no nuclear plant has restarted after being decommissioned. The decision reflects a growing demand for reliable energy sources amid the rapid expansion of data centers driven by AI technology. Microsoft’s commitment to purchasing energy from this facility underscores its strategy to align with sustainability goals while addressing increasing energy needs.
The reopening of Three Mile Island symbolizes a potential rebirth for nuclear power in the U.S., transforming a site once associated with disaster into a cornerstone for future energy solutions.
