Microsoft has secured a deal to revive the closed Three Mile Island nuclear power plant, pending regulatory approval. This agreement gives Microsoft exclusive rights to 100% of the plant’s output to support its AI data center operations. Constellation, the plant's owner, announced a power purchase agreement that could see the facility operational again by 2028.
Originally closed in 2019 for economic reasons, the reactor is next to a unit that was shut down in 1979 following the most significant nuclear accident in U.S. history. The revitalized plant is expected to generate 837 megawatts of energy, sufficient to power over 800,000 homes, showcasing the substantial energy needs for data centers supporting Microsoft's ambitious AI initiatives.
As part of this groundbreaking deal, Microsoft will purchase power from the facility—now named Crane Clean Energy Center in honor of the late Chris Crane, former CEO of Exelon—for 20 years. This move aligns with Microsoft’s goal to run its data centers on clean energy by 2025, especially as the company's greenhouse gas emissions rise with its AI pursuits.
“This agreement marks a significant step in Microsoft’s commitment to help decarbonize the grid and achieve carbon negativity,” stated Bobby Hollis, Microsoft's vice president of energy. The company continues to collaborate with energy providers to create carbon-free energy solutions that meet capacity and reliability needs.
Recently, Microsoft has also explored next-generation nuclear reactors, showing support for small modular reactors (SMRs). Bill Gates, Microsoft cofounder, advocates for nuclear energy as a key player in addressing climate change.
Constellation plans to invest $1.6 billion to reactivate the plant, requiring approval from the Nuclear Regulatory Commission and necessary permits from state and local authorities. They are also seeking a license renewal to extend operations until at least 2054.