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Microsoft has signed a groundbreaking deal to revive the shuttered Three Mile Island nuclear power plant, aiming to secure energy for its expanding AI data center operations. If approved by regulators, this agreement would grant Microsoft exclusive rights to 100 percent of the plant’s output, set to come online in 2028.
The power purchase agreement, announced by Constellation, the owner of Three Mile Island, marks a significant step toward supporting Microsoft’s ambitious AI initiatives. The plant’s reactor, which was retired in 2019 due to economic factors, is adjacent to a unit that was decommissioned in 1979 following the most infamous nuclear accident in U.S. history. Once operational, the facility will have the capability to generate 837 megawatts of energy—sufficient to power more than 800,000 homes—highlighting the massive energy requirements for Microsoft’s data centers and AI projects.
In a notable first for the tech giant, Microsoft has committed to purchasing power from the newly renamed Crane Clean Energy Center for a period of 20 years. This initiative aligns with Microsoft’s goal to operate its data centers on clean energy by 2025, especially as its greenhouse gas emissions have increased alongside its focus on AI technologies. The company continues to collaborate with energy providers to develop carbon-free energy solutions, aiming to address the grid’s capacity and reliability challenges.
Microsoft has shown a growing interest in next-generation nuclear energy, particularly small modular reactors (SMR), to meet its energy demands. Co-founder Bill Gates has been vocal about his belief in nuclear energy as a viable solution to climate challenges.
Constellation plans to invest $1.6 billion to reactivate the Three Mile Island facility, but must first obtain approval from the Nuclear Regulatory Commission and secure the necessary permits from state and local authorities. Moreover, Constellation is pursuing a license renewal to prolong the plant’s operations until at least 2054.
As Microsoft pushes forward with its AI ambitions, the revival of Three Mile Island underscores the company’s commitment to integrating sustainable energy sources into its operations.