Microsoft has announced a new deal which could see a closed reactor at the Three Mile Island nuclear plant reopened as early as 2028, provided it is approved by regulators. The nuclear facility situated in Londonderry, Pennsylvania is currently owned by Constellation, who last month announced a 20-year Power Purchase Agreement (PPA) with Microsoft. The reactor, known as TMI Unit 1, was shuttered in 2019 for ‘economic reasons’ and the planned restart could see not only 835 megawatts of carbon-free energy added to the grid, but also result in the creation of 3,400 direct and indirect jobs, alongside generation of an estimated $3 billion in state and federal taxes[i].
Should Microsoft’s plans see approval, the plant will generate enough electricity to power more than 800,000 homes annually, demonstrating the significant levels of energy needed for data centres and Microsoft’s AI ambition. It’s also not the first switch towards nuclear by Big Tech; earlier this year, Amazon purchased a data centre site next to the Susquehanna nuclear power plant in Pennsylvania and will use a portion of the plant's energy generation to meet its electricity requirements.
Bobby Hollis, vice president of energy at Microsoft has said: “This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative.”[ii]
Joe Dominguez, president and CEO, Constellation said: “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.”[iii]
The site will be renamed ‘the Crane Clean Energy Center’ after Constellation’s former CEO Chris Crane. Not only does it highlight the soaring demand for energy stemming from Big Tech, but also raises the thought that the economics (and environmental arguments) have changed. Three Mile Island previously operated at both high efficiency and at low cost, but was effectively driven out of business by record low prices for natural gas and the introduction of relatively cheap, subsidised renewable energy to the grid[iv]. Now however, nuclear is being looked at again, where it is viewed as a “firm power source” delivering consistent levels of energy, compared with wind and solar which are intermittent. Further whilst nuclear power is costly, more money has been made available in the form of tax-credits courtesy of the Inflation Reduction Act (IRA).
The Three Mile Island plant may be familiar to readers; a separate area of site, TMI Unit 2 was responsible for the worst nuclear accident in American history, when in 1979 the plant suffered a partial meltdown and release of radioactive material. According to the US NRC (Nuclear Regulatory Commission), the partial meltdown on 28th March 1979 led to “sweeping changes involving emergency response planning, reactor operator training, human factors engineering, radiation protection, and many other areas of nuclear power plant operations”[v] it also led the NRC to tighten and heighten its regulatory oversight. TMI unit 2 was shut down in 1979 and is in the process of being decommissioned by its owner Energy Solutions.
Dominguez adds: “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.”[vi]
[ii] Ibid
[iii] Ibid
[iv] Why Microsoft made a deal to help restart Three Mile Island | MIT Technology Review
[v] Backgrounder On The Three Mile Island Accident | NRC.gov
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
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