Three Mile Island nuclear power plant to restart following Microsoft deal

Constellation Energy has signed the largest power purchase agreement with Microsoft, paving the way for the restart of the Three Mile Island Unit 1 nuclear power plant, the largest owner of US nuclear plants said on Friday.

Microsoft and other major tech firms have been looking to buy carbon-free electricity to power their data centers, which consume ever-increasing amounts of electricity.

In turn, power companies and utilities are ramping up their power supply and planning for an increase in US electricity demand driven by data centers, AI and chip manufacturing.

The 20-year agreement announced today paves the way for the launch of the Crane Clean Energy Center (CCEC) with the restart of Unit 1 Three Mile Island, Constellation said.

Unit 1 Three Mile Island operated for decades before closing for economic reasons five years ago.

Under the agreement, Microsoft will purchase power from the renovated plant as part of its goal to help match the power its PJM data centers use with carbon-free energy. The Clean Energy Center is expected to be online in 2028.

Restarting a nuclear reactor requires approval from the US Nuclear Regulatory Commission following a comprehensive safety and environmental review, as well as permits from relevant state and local agencies. In a separate filing with the commission, Constellation will seek a license renewal that would extend the plant’s operations until at least 2054.

“Prior to its premature shutdown due to the weak economy, 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 to serve as an economic engine for Pennsylvania. ” said Joe Dominguez, President and CEO of Constellation.

Bobby Hollis, VP Energy at Microsoft, commented, “Microsoft continues to work with energy providers to develop carbon-free energy sources that help meet the capacity and reliability needs of networks.”

By Charles Kennedy for Oilprice.com

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