Microsoft and Constellation Energy sign deal to restart Three Mile Island nuclear unit

Microsoft and Constellation Energy have entered into a power deal to restart Unit 1 of the Three Mile Island nuclear plant in Pennsylvania, the first-ever nuclear plant revival of its kind. The deal comes amid surging electricity demand from data centers driven by advancements in artificial intelligence and cloud computing. Nuclear energy, with its nearly carbon-free and reliable nature, is gaining favor among tech companies for meeting both power needs and climate commitments.

Constellation plans to invest $1.6 billion in the project, with the plant expected to come online by 2028, pending federal, state, and local approvals. Microsoft has agreed to purchase electricity from the revived unit for 20 years, with the plant generating 835 megawatts of power, enough to supply around 700,000 homes.

The restart of the plant, which was retired in 2019 due to economic reasons, will require approval from the Nuclear Regulatory Commission (NRC), though Constellation has yet to file the necessary applications. The review process is expected to be completed by 2027. Unit 2 of Three Mile Island, which suffered a partial meltdown in 1979, will not be restarted.