Sacramento: In a groundbreaking move, Microsoft and Constellation Energy have announced a deal to reopen the partially melted-down Three Mile Island nuclear plant. This agreement marks a historic moment, as it is the first instance of a decommissioned U.S. nuclear facility being brought back into service, and the first time that the entire output of a commercial nuclear power plant will be allocated to a single customer.
The collaboration is primarily aimed at meeting the growing energy demands of Microsoft’s artificial intelligence (AI) operations while simultaneously revitalising the notorious Pennsylvania facility, which was the site of the worst nuclear accident in U.S. history.
Constellation Energy, the owner of the plant, plans to restart the Three Mile Island Unit 1 by 2028, with an estimated cost of about $1.6 billion. This unit is adjacent to the reactor that experienced a partial meltdown in 1979, an event that instilled fear in the public and severely impacted the nuclear industry.
Joseph Dominguez, CEO of Constellation, emphasised the significance of this decision, stating, “The nuclear power plant never should have been allowed to shut down.” He noted that the reopened facility could generate as much clean energy as all the renewable sources developed in Pennsylvania over the past three decades.
Upon its restart, the plant is expected to provide Microsoft with 835 megawatts of electricity—enough to power approximately 800,000 homes.
On March 28, 1979, the Unit 2 reactor core at the Three Mile Island plant partially melted down due to a combination of equipment malfunctions and human error, leading to a significant loss of coolant. Although radioactive gases were released into the environment, there were no direct casualties associated with the incident. Unit 2 remains sealed, with its radioactive core encased in concrete.
The revival of Three Mile Island is part of a growing trend among tech companies seeking reliable, zero-emissions energy sources to support their expanding data centres and AI technologies. However, Microsoft’s plan has encountered regulatory challenges and public scepticism. Constellation must navigate intensive safety inspections from the U.S. Nuclear Regulatory Commission, which has never before authorised the reopening of a nuclear facility. The review process is expected to be completed by 2027.
Moreover, the deal has raised concerns regarding the use of federal subsidies. The project relies significantly on tax breaks included in the 2022 Inflation Reduction Act. Critics argue that it is inappropriate to use public funds to benefit a single private entity.
Reactions on social media have been mixed. One commenter on The Washington Post’s website sarcastically suggested, “OK, as long as the waste is sent to Microsoft HQ in Redmond, WA.” Another user on The Verge raised concerns about the broader implications, stating, “The potential power demand is looking to be so large—it will delay the transition to carbon-free energy… Seems like a law saying all electricity for AI and Crypto farms in the US has to be carbon-free is in order.”
Some community leaders, however, welcomed the potential economic revival. A study funded by the Pennsylvania Building and Construction Trades Council estimates the creation of 3,400 jobs and a $3 billion contribution in state and federal taxes.
Pennsylvania Governor Josh Shapiro expressed support for the project, stating that the plant would “safely utilise existing infrastructure to sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs.”
Despite the potential benefits, nuclear safety advocates have voiced significant concerns. Henry Sokolski, a former deputy for nonproliferation policy at the Pentagon, criticized the use of public subsidies, stating, “Microsoft says it will buy all of the nuclear electricity from Three Mile Island, but it wants ratepayers and taxpayers to pick up the tab to refurbish the plant.”
The deal between Microsoft and Constellation Energy to reopen the Three Mile Island nuclear plant represents a significant step in both energy policy and the intersection of technology and clean energy. As the process unfolds, the balance between economic revival and public safety will remain a critical focus for all stakeholders involved.
Read More: AWS targets larger banks to drive Cloud growth in India