Constellation Energy and Microsoft Partner to Restart Three Mile Island Nuclear Plant for AI Data Center Power
In a groundbreaking move, Constellation Energy and Microsoft are teaming up to restart the Three Mile Island nuclear plant, aiming to provide a sustainable energy source for the growing demand of AI data centers. With U.S. power generation capacity expected to rise by 2.4% to 2.7% through the end of the decade, data center power consumption is projected to double by 2030, accounting for 9% of the country’s electricity usage.
While tech companies are racing to meet the surge in energy demand, utilizing nuclear power comes with its own set of challenges, including regulatory hurdles and local opposition. The $1.6-billion plan to restart the Unit 1 reactor at Three Mile Island by 2028 will help offset the energy consumption of Microsoft’s data centers in the region, following a similar deal between Talen Energy and Amazon.com in Pennsylvania.
Industry sources suggest more nuclear contracts for data centers are in the works, but each deal presents unique obstacles. Supply chain disruptions and regulatory approvals from the U.S. Nuclear Regulatory Commission pose significant challenges, along with the need to address environmental and community concerns surrounding the plant’s history of a partial meltdown in 1979.
Despite efforts to streamline the licensing process, delays are expected as companies navigate through the complexities of restarting nuclear facilities and connecting them to the grid. It could take years to complete the project and address technical issues that may arise from equipment being dormant for an extended period.
Overall, the partnership between Constellation Energy and Microsoft signifies a shift towards sustainable energy solutions for the future of data centers, highlighting the importance of innovation and collaboration in meeting the growing energy demands of the digital age.