Microsoft’s artificial intelligence (AI) programs require new data centers to handle internet traffic flow. These servers consume huge amounts of energy, and Microsoft plans to run them on clean power. The company is tapping into a nuclear energy source thought to be defunct: Three Mile Island.
Most of us know the story of Three Mile Island. In 1979, the Pennsylvania nuclear power plant suffered a meltdown in Unit 2, causing widespread fear. This event is widely blamed for setting back nuclear power deployment in the United States by five decades. It took the passing of the Inflation Reduction Act and more federal funding for cleantech that Microsoft could consider entering this deal with the owner of Unit 1, Constellation Energy, to power its AI business.
In September, Constellation, based out of Baltimore, announced it is entering into a 20-year power purchase agreement with the tech giant, starting with the opening of the Crane Clean Energy Center.
This effort will see Unit 1 come back online in 2028.
Three Mile Island didn’t fully close after its partial meltdown in 1979 — it supplied electricity for the surrounding areas until 2019. Microsoft and Constellation plan to restart Unit 1’s reactor, sending all power from here to data centers around the East Coast and potentially beyond.
Photo Courtesy mikemacmarketing
“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, and nuclear plants are the only energy sources that can consistently deliver on that promise,” Joe Dominguez, president and CEO of Constellation, said in a press release.
Inflation Reduction Act incentives encourage more adoption of renewable energy, and nuclear is one source that’s getting a much-needed public relations boost. Nuclear power can generate around-the-clock clean energy, with its only byproduct being steam.
However, events like Three Mile Island, Chernobyl in 1986, and the Fukushima meltdown following the deadly 2011 earthquake in Japan caused many to scuttle nuclear power expansion. Problems in light of the climate crisis are changing people’s minds.
Patrick White, research director of the Nuclear Innovation Alliance, told MIT Technology Review there is more money available for nuclear power updates. Tech companies like Microsoft need it as AI data centers open and use more electricity.
Constellation anticipates the Crane Clean Energy Center will create 3,400 direct and indirect jobs while generating more than $3 billion in state and federal taxes.
Unit 2 had produced electricity up until the mid-1980s before it was closed for over 30 years due to worries about further meltdowns.
Although it is reported there were no radiation-related issues following the 1979 incident, the public fear was enough to justify not using the reactor anymore. Three Mile Island also suffered financial losses after natural gas became prevalent and cost less.
Photo Courtesy Constellation Energy
“Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission to serve as an economic engine for Pennsylvania,” Dominguez said in the press release.
Constellation plans to commit $1 million in philanthropic aid to the region over the next five years. The funds will support employment opportunities and community needs in addition to the money needed for the facility restart.
Pennsylvania Rep. Scott Perry and Gov. Josh Shapiro expressed gratitude and excitement when the news about the Microsoft Three Mile Island deal was announced.
“Under the careful watch of state and federal authorities, the Crane Clean Energy Center will safely utilize existing infrastructure to sustain and expand nuclear power in the Commonwealth while creating thousands of energy jobs and strengthening Pennsylvania’s legacy as a national energy leader,” Shapiro said in a statement.
Constellation says Unit 1 won’t come back online until 2028 at the earliest; it is an independent facility from Unit 2. Intense inspections and relicensing need to be conducted by federal officials. According to MIT Technology Review, many climate experts believe this is a sensible plan since nuclear energy is indefinite, unlike wind and solar, which are “intermittently available.” Dominguez asserts taxpayers won’t be funding the restart but did say Constellation will need federal funding to complete this project.
Microsoft has several sustainability goals it hopes to achieve before 2030, including carbon neutrality. Using renewable energy for its data centers is a major part of the strategy.
“This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon-negative,” Bobby Hollis, vice president of energy at Microsoft, said in a statement. “Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids’ capacity and reliability needs.”
