3 Mile Island Is Reopening And Selling Its Power To Microsoft

Three Mile Island, the site of the greatest nuclear disaster in the United States, is reopening and will only sell power to Microsoft as the firm seeks energy sources to feed its AI ambitions.

Constellation Energy stated Friday that its Unit 1 reactor, which closed five years ago, will be restarted in 2028, subject to Nuclear Regulatory Commission permission. Microsoft will buy the carbon-free electricity generated by it to power its data centers for artificial intelligence.

Financial parameters of the 20-year pact, which Constellation described as its largest ever, were not released.

Three Mile Island Is Reopening And Selling Its Power To Microsoft

“Powering industries critical to our nation’s global economic and technological competitiveness, including data centres, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise,” said Joe Dominguez, the CEO of Constellation.

Clean energy enthusiasts and corporations alike are looking to nuclear energy as a reliable supply of zero-carbon electricity. One significant advantage is that, unlike wind and solar, nuclear power may be used at any time of day or night.

However, environmental groups have criticized nuclear power for decades due to its waste. The United States still lacks a permanent disposal for such waste, instead storing it at over 70 operational and closed facilities across the country.

According to Constellation, reopening the Unit 1 reactor will create 3,400 direct and indirect jobs while also adding more than 800 megawatts of electricity to the grid. It is also estimated that it will contribute $16 billion to Pennsylvania’s GDP, where the factory is located.

Constellation (CEG) stock rose more than 16% during lunchtime trading.

Three Mile Island, near Harrisburg, is best known as the site of the most significant commercial nuclear power plant disaster in US history when one of its two reactors partially melted down. The Unit 2 reactor, which is adjacent to Unit 1, has been closed since 1979, following the disaster.

The agreement was made possible by President Joe Biden’s climate package, which included billions of dollars in tax credits to encourage sustainable energy sources such as nuclear, wind, solar, and clean hydrogen. The Biden administration and Congress have also spent billions of dollars to save outdated factories from closing.

In the United States, “there’s not a lot of historical precedent on regulatory approval” to restart a shutdown plant, said Alan Ahn, deputy director of nuclear at the think tank Third Way’s climate and energy program.

Regulators and industry are striving to repower the Palisades nuclear reactor in Michigan, which was set to close until the federal government intervened with more than $1 billion to rescue it. Ahn said that Three Mile Island has been mothballed for numerous years.

However, as tech titans seek new sources of electricity to feed their AI demands, Ahn said corporations are increasingly considering nuclear energy, which is carbon-free and helps them meet lofty climate targets.

Three Mile Island Is Reopening And Selling Its Power To Microsoft

“When you consider the increased power requirements of artificial intelligence, data centers must operate at maximum capacity 24 hours a day.”There aren’t many alternatives to nuclear,” Ahn added. “It’s becoming fairly clear that the tech companies are really intently looking at nuclear.”

“This agreement is a major milestone in Microsoft’s efforts to help decarbonise the grid in support of our commitment to become carbon negative,” said Bobby Hollis, vice president of energy at Microsoft, in a statement.

SOURCE | AP