Nuclear Comeback: Three Mile Island to Power Microsoft’s Data Centers in $1.6 Billion Deal

In a striking turn of events, Constellation Energy announced on Friday its plans to reopen the long-shuttered Three Mile Island nuclear plant in Pennsylvania,  the site of the most infamous nuclear accident in U.S. history.  The move marks a potential revival of atomic power in the United States as energy demands surge and the urgency to combat climate change intensifies. 

A Revival After Decades of Dormancy 

Three Mile Island plant became synonymous with the risks of nuclear energy following a partial meltdown of one of its reactors in 1979. This incident spurred nationwide panic despite causing no casualties.  The plant’s second reactor, unaffected by the disaster, continued to operate for decades until it was closed in 2019 for economic reasons. Now, Constellation Energy plans to invest $1.6 billion to refurbish and restart the reactor, with a tentative reopening date set for 2028, pending regulatory approval. 

In a 20-year agreement, Microsoft has committed to purchasing the plant’s electricity to power its rapidly expanding network of data centers. This deal, according to Joseph Dominguez, CEO of Constellation Energy, is a game-changer: “Symbolism is enormous. This was  the site of  industry’s greatest failure, and now it can be a place of rebirth.” 

A Changing Energy Landscape 

The U.S. nuclear industry has struggled in recent years, with 13 reactors closing between 2012 and 2022 due to competition from cheaper natural gas and the rise of renewable energy sources such as wind and solar. However,  the escalating threat of climate change has prompted many to reconsider nuclear power as a key component of the nation’s energy mix. Unlike fossil fuels, nuclear power plants produce electricity around the clock without emitting carbon dioxide, making them an attractive option for states and corporations looking to reduce their carbon footprints. 

Congress recently passed legislation aimed at keeping existing nuclear plants running, offering tax credits to ensure their viability. Similar shifts are happening across the country: in California, lawmakers reversed a decision to shut down the Diablo Canyon nuclear plant, and in Michigan, Holtec International is considering reopening the Palisades plant, which closed in 2022. 

Technical Challenges Ahead 

Reopening a nuclear plant after several years of dormancy is no easy task. Constellation has spent the past 20 months inspecting a closed reactor at Three Mile Island, searching for signs of corrosion or structural decay.  The company will need to replace the reactor’s main power transformer, overhaul its turbines and cooling systems, and recruit approximately 600 workers to operate the plant. Many of the original employees were relocated when the reactor closed in 2019, but Dominguez noted that many are eager to return. 

If successful,  a revamped reactor will be capable of producing 835 megawatts of electricity, enough to power more than 700,000 homes.  The unit involved in the 1979 accident, known as Unit 2, remains inactive and is undergoing decommissioning. To mark a new chapter,  the plant will be renamed  Crane Clean Energy Center, in honor of Chris Crane, Constellation’s former chief executive, who passed away in April. 

Local and Political Reactions 

announcement has been met with enthusiasm from Pennsylvania’s political leaders. Tom Mehaffie, a Republican state representative whose district includes the plant, praised the decision: “This will transform the local economy and presents a rare opportunity to power our economy with reliable clean energy. It’s a rare chance to invest in clean, carbon-free, and affordable power at a time when  the world is heating up.” 

A recent poll found that 57 percent of Pennsylvanians support reopening Three Mile Island, provided it doesn’t lead to higher taxes or electricity rates. Dominguez emphasized that refurbishment will be fully funded by Constellation, with no additional costs passed on to state taxpayers or utility customers. “We’re not asking for a penny from state or from utility customers,” he said.

 

Opposition and Skepticism 

Despite the positive reception,  the plan has its detractors. A small group of protesters gathered outside the plant in August to oppose reopening, holding signs that referenced the 1979 disaster and subsequent evacuation of nearby residents. Although the accident caused no deaths, it left an indelible mark on public perception of nuclear safety. 

Edwin Lyman, a physicist and nuclear safety expert at the Union of Concerned Scientists, expressed concerns about the technical difficulties of restarting a reactor that has been dormant for years. “No one’s done this before,” Lyman cautioned, suggesting that unforeseen challenges could emerge during the process. 

Growing Appeal of Nuclear Power 

Microsoft’s decision to purchase power from Three Mile Island underscores a broader trend in the tech industry’s embrace of nuclear energy. Companies like Microsoft and Amazon, which operate massive data centers that require round-the-clock electricity, are turning to nuclear power as a reliable, carbon-free alternative to fossil fuels. With renewable sources like wind and solar unable to provide consistent power at all hours, nuclear energy is increasingly seen as a practical solution for meeting both energy needs and climate goals. 

“Only a few short years ago, tech companies scoffed at buying nuclear electricity,” said Mark Nelson, managing director of  Radiant Energy Group, an energy consultancy. “Return of Three Mile Island is the return of hard reality.” 

However, not all recently shuttered reactors in the United States are candidates for revival. While plants like Three Mile Island, Palisades in Michigan, and Duane Arnold in Iowa may be brought back online, experts caution that the majority of decommissioned reactors are too far along in the shutdown process to be reopened. 

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