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Microsoft, Constellation Energy have signed a power deal to help resurrect a unit of the Three Mile Island nuclear plant. (Photo: Wikimedia Commons)
Facing pressure to reduce carbon emissions and achieve net-zero targets, the tech industry is ramping up its procurement of low-carbon nuclear energy, even considering plants that have previously experienced nuclear incidents.
Constellation Energy, the largest nuclear power operator in the U.S., recently announced a 20-year power purchase agreement with Microsoft to prepare for the restart of the Three Mile Island nuclear plant. However, the plan has not yet received approval from federal, state, and local governments, adding uncertainty to the restart initiative.
Three Mile Island’s nuclear leak incident
On Sept. 20, Constellation Energy stated that its contract with Microsoft marks the largest deal of its kind in history, expected to provide 800 MW of carbon-free electricity, create 3,400 jobs, and generate $16 billion in revenue for the Pennsylvania government, along with $3 billion in taxes.
The Three Mile Island plant was the site of the most serious nuclear meltdown and radiation leak in U.S. history in 1979, leading to the closure of its Unit 2. Constellation emphasized that they plan to restart Unit 1, which was shut down five years ago due to economic reasons. They intend to invest $1.6 billion and rename the facility the Crane Clean Energy Center (CCEC) in honor of former CEO Chris Crane, with plans for it to resume operations by 2028.
Although they are not restarting the unit involved in the leak, the plan still requires federal approval. Scott Burnell, a spokesperson for the Nuclear Regulatory Commission (NRC), stated, “It’s up to Constellation to lay out its rationale for justifying restart, so we’re prepared to engage with the company on next steps.”
Constellation Energy stated that its contract with Microsoft marks the largest deal of its kind in history, expected to provide 800 MW of carbon-free electricity. (Photo: Microsoft)
Microsoft embrace for more nuclear power
Microsoft has been expanding its data center footprint, resulting in an increase in carbon emissions last year. To offset these emissions, the company has relied on renewable energy certificates from disconnected renewable sources and invested in next-generation nuclear projects like TerraPower and fusion startup Helion Energy. The decision to further procure nuclear power—despite not yet obtaining regulatory approval—reflects Microsoft's efforts to ensure a reliable supply of low-carbon electricity in the future.
Concerns about insufficient green energy supply appear to be growing within the tech sector, leading to unease among many power producers. Former U.S. Energy Secretary Ernest Moniz has remarked that the surge in data centers driven by artificial intelligence (AI) is putting pressure on the power industry, especially during a transitional phase where coal plants are retiring and the supply from wind and solar sources is not keeping pace, potentially increasing the demand for low-carbon energy sources like natural gas and nuclear power.
Source: Constellation、Reuters、Wall Street Journal
