Microsoft to Revive Three Mile Island to Fuel AI Ambitions

Microsoft recently signed a groundbreaking deal with Constellation Energy to revive the dormant Three Mile Island nuclear power plant, securing all its output to power Microsoft's AI data centers. Approved by regulators, this agreement marks the first instance of Microsoft utilizing legacy nuclear power as a primary energy source. The restarted plant will be rebranded as the Crane Clean Energy Center in honor of former Exelon CEO Chris Crane and is expected to be operational by 2028. This is prepared by SSP.

The plant's reactors, closed for economic reasons in 2019, sit next to the infamous unit shut down in 1979 following the worst nuclear accident in U.S. history. Once operational, it will generate 837 megawatts, sufficient to power over 800,000 homes. This highlights the colossal energy demands of data centers tied to the escalating AI and cloud computing growth. Microsoft’s agreement envisages a 20-year span, supporting its goal of carbon neutrality by 2025 and powering expansions in numerous states.

While the adoption of nuclear energy helps Microsoft mitigate its rising greenhouse gas emissions driven by AI projects, the bigger picture reflects a burgeoning trend within the tech industry. Data center energy consumption is anticipated to rise sharply, growing from 4% to potentially 9% of U.S. electricity demand by decade’s end. Hyperscale data centers by tech giants like Microsoft, Google, and Amazon, responsible for 60-70% of this consumption, escalate this urgency.

Addressing this demand growth aligns business strategies with aggressive climate goals, explaining why Microsoft and Big Tech are eyeing nuclear power. Fission reactors offer sustained, high-capacity energy, though they've seen scant investment — only two new reactors have started in the U.S. in the past decade, despite concurrent growth in data center numbers. Tech heavyweights’ investments extend to nuclear start-ups like TerraPower and Oklo, although these ventures face significant regulatory and technological barriers.

In this evolving scenario, the reliability and established setup of reactors like the Three Mile Island plant provide immediate, if symptomatic, relief. Tech companies’ long-term strategies will need further diversification, due to the limited availability of such rebootable plants. Meanwhile, community reception and the relative attractiveness of renewable energy further complicate nuclear adoption.

Constellation's $1.6 billion refurbishing effort includes securing approvals from the Nuclear Regulatory Commission and other agencies. As exemplified by Bill Gates' comparison, next-gen nuclear plants offer a robust solution to climate challenges—a perspective that’s met with mixed public perception but pragmatic acceptance among growing tech needs. The road is uncertain, yet crucial for meeting growing power demands while adhering to sustainability commitments.