Constellation Energy has agreed to restart the Three Mile Island nuclear reactor, which will provide much of the electricity that powers Microsoft's data centers.
Three Mile Island The nuclear plant in Dauphin County, Pennsylvania, was the site of a partial reactor meltdown in 1979. But the energy company plans to reopen Reactor 1, which did not experience a meltdown and was shut down in 2019.
CNBC reported that Constellation will invest $1.6 billion to restart the plant through 2028. And that is expected The company plans to continue operating the plant until 2054. The plant will be named the Crane Clean Energy Center after the company's late CEO, Chris Crane.
Microsoft will buy power from the plant under a 20-year contract to provide said carbon-free electricity for its artificial intelligence and data centers, despite criticism from environmentalists who have shunned nuclear energy because of its wastefulness.
Microsoft founder Bill Gates also runs a green energy company. Breakthrough EnergyBut green energy doesn't provide the capacity Microsoft needs for its data centers.
“This decision is the strongest symbol yet of the resurgence of nuclear power as a clean and reliable source of energy.”
Energy reporter Mark Nelson wrote: Post to X Microsoft will pay about $800 million per year over the life of the 20-year contract, bringing its total spending on energy to $16 billion.
According to TokenistThe contract also calls for Constellation to provide Microsoft with about 835 megawatts of power, the largest amount of energy the company has ever purchased — nearly all of Unit 1's maximum capacity, which Constellation said was 837 megawatts before the shutdown.
That's enough to power more than 800,000 homes, but Microsoft would essentially have its own nuclear power plant to power its data centers.
“This decision is the strongest symbol yet of the return of nuclear power as a clean and reliable source of energy,” Constellation CEO Joe Dominguez said. “This return is the strongest sign yet that America is turning its attention to the enduring promise of nuclear energy — an old and loyal ally ready to light a new path.”
CNN reported that restarting the reactor would create about 3,400 jobs and add an additional $16 billion to Pennsylvania's economy, delighting local politicians.
“This provides a rare opportunity to transform our local economy and power it with reliable, clean energy,” said state Rep. Tom Mehaffey (R-Ill.), whose district includes the plant. “On the heels of the hottest year in the history of the planet, this is a rare and valuable opportunity to invest in clean, carbon-free, affordable electricity.”
After the news broke, Constellation's stock price rose about 15%, or about $30 per share.
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