In an unprecedented move, Microsoft has announced plans to purchase 100% of the power from a revived Three Mile Island nuclear plant for the next two decades. This bold initiative, revealed on September 20, 2024, aims to address the tech giant's growing energy needs, particularly for its artificial intelligence operations.
Three Mile Island, located on the Susquehanna River in Pennsylvania, gained notoriety as the site of the worst nuclear accident in U.S. history in 1979. The plant's Unit 1 reactor, which operated without major incidents for 45 years, was shut down in 2019 due to economic factors. Now, plant owner Constellation Energy plans to restart operations by 2028, pending regulatory approval.
The revival of Three Mile Island represents a significant shift in the nuclear power industry. If approved, it would mark the first time a decommissioned U.S. nuclear plant has been brought back online. The project is estimated to cost Constellation about $1.6 billion and is contingent on federal subsidies provided by the 2022 Inflation Recovery Act.
Joseph Dominguez, CEO of Constellation, emphasized the importance of this project:
"The energy industry cannot be the reason China or Russia beats us in AI. This plant never should have been allowed to shut down, ... It will produce as much clean energy as all of the renewables [wind and solar] built in Pennsylvania over the last 30 years."
The deal faces several challenges, including intensive safety inspections from the Nuclear Regulatory Commission and questions about the allocation of federal tax breaks to a project serving a single private company. However, proponents argue that the revival could create 3,400 jobs and generate $3 billion in state and federal taxes.
This agreement reflects the tech industry's growing interest in nuclear power as a clean energy source. Other companies, such as Amazon, are also exploring similar partnerships with nuclear plants to power their data centers. The industry's shift towards nuclear energy has raised concerns among clean-energy advocates about the potential impact on the broader transition to renewable energy sources.
Despite these concerns, Bobby Hollis, vice president of energy at Microsoft, stated that this agreement is "a major milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative."
As the tech industry continues to grapple with its increasing energy demands, the revival of Three Mile Island could set a precedent for future collaborations between tech giants and the nuclear power industry. The success of this project may shape the future of energy production and consumption in the rapidly evolving landscape of artificial intelligence and data center operations.