Three Mile Island — the infamous site of America’s worst nuclear disaster — is gearing up for a comeback, and Microsoft is first in line to tap into its energy.
The tech giant signed a data center deal with Constellation Energy to help resurrect a unit of the nuclear plant in Pennsylvania in what would be the first-ever restart of its kind, the companies said on Friday.
Microsoft locked in a 20-year deal to scoop up all the energy the revived reactor will generate, helping to fuel the company’s growing need for electricity to power its AI growth.
Financial terms of the deal were not disclosed.
“Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day,” said Constellation CEO Joe Dominguez in a statement.
“Nuclear plants are the only energy sources that can consistently deliver on that promise.”
The federal Nuclear Regulatory Commission (NRC) said on Friday it has not yet gotten an application on restarting the unit. If it green-lights the deal, the reactor is expected be back online by 2028.
The reopening is forecast to create 3,400 jobs and pour $16 billion into the state’s economy, according to Constellation.
Plus, it’ll add more than 800 megawatts of electricity to the grid, helping meet the growing demand for energy.
Constellation shares surged 22%, while Microsoft stock ticked down less than 1%.
Big tech has led to a sudden surge in US electricity demand for data-centers needed to expand technologies like artificial intelligence and cloud computing.
Nuclear energy, which is nearly carbon-free and broadly considered more reliable than energy sources like solar and wind, has become a popular option for technology company’s with uninterrupted power needs and climate pledges.
“This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative,” Microsoft VP of energy Bobby Hollis said.
But not everyone’s cheering.
Environmental groups have been blasting nuclear energy for decades, mainly over concerns about radioactive waste. The US still doesn’t have a permanent home for its nuclear leftovers, which are piling up at more than 70 plants across the country.
Despite the controversy, nuclear energy is gaining steam as a reliable power source, especially as wind and solar face limitations.
While Unit 1 is gearing up for a reboot, its neighbor — Unit 2 — has been permanently shut since 1979, following the meltdown that made Three Mile Island a household name.
