In a significant development for the energy sector, Constellation Energy announced plans to restart the Unit 1 reactor at Pennsylvania’s Three Mile Island, the site of the worst nuclear power plant accident in U.S. history. The agreement, revealed on September 20, marks a notable collaboration with Microsoft, which aims to purchase energy from the revitalized plant as part of its commitment to achieve carbon-free energy for its data centers in the PJM Interconnection region.
Three Mile Island’s Unit 1 is situated alongside the infamous Unit 2 reactor, which experienced a partial meltdown on March 28, 1979. The U.S. Nuclear Regulatory Commission characterized the incident as “the most serious accident in U.S. commercial nuclear power plant operating history.” However, the agency emphasized that the small radioactive releases from the incident had no detectable health effects on plant workers or the surrounding community. The event prompted significant changes in nuclear plant operations, regulatory oversight, and reactor safety protocols.
The Unit 1 reactor was taken offline in 2019 due to economic factors, according to Constellation, which is headquartered in Baltimore. Before its closure, Unit 1 generated 837 megawatts of electricity, enough to power more than 800,000 average homes. Constellation plans to rebrand the reactor as the Crane Clean Energy Center.
Joe Dominguez, president and CEO of Constellation Energy, expressed optimism about the reactor’s future. “Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid,” he stated. “We look forward to bringing it back with a new name and a renewed mission to serve as an economic engine for Pennsylvania.”
The anticipated restart of the nuclear reactor is set for 2028, but it will require approval from the U.S. Nuclear Regulatory Commission (NRC) following a comprehensive safety and environmental review. The project will also need permits from relevant state and local agencies.
Bobby Hollis, Microsoft’s vice president of energy, praised the new agreement, calling it a “major milestone” in the company’s efforts to decarbonize the power grid. “Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grid’s capacity and reliability needs,” Hollis said.
While financial details of the deal were not disclosed, Constellation cited an economic impact study commissioned by the Pennsylvania Building & Construction Trades Council. The study estimated that the new plant will create approximately 3,400 direct and indirect jobs and contribute over 800 megawatts of carbon-free electricity to the grid. Additionally, the relaunch of the plant is projected to add $16 billion to Pennsylvania’s gross domestic product and generate $3 billion in state and federal taxes.
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The renewed interest in nuclear energy comes amid rising energy demands from tech companies, particularly those involved in artificial intelligence (AI). Mark Nelson of Radiant Energy Group noted a shift in perspective regarding nuclear power. “Only a few short years ago, tech companies scoffed at buying nuclear electricity,” he remarked. “The return of Three Mile Island is the return of hard reality.”
Pennsylvania Governor Josh Shapiro also weighed in on the significance of the deal, highlighting the role of the state’s nuclear energy industry in providing safe, reliable, and carbon-free electricity. “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,” Shapiro stated.
The governor added that his administration is committed to reducing energy costs and ensuring the reliability of Pennsylvania’s energy grid. “My Administration will continue to work to cut energy costs and ensure the reliability of our energy grid so that Pennsylvanians can have access to affordable power made right here in Pennsylvania for years to come,” Shapiro concluded.
As the energy landscape evolves, the revival of the Three Mile Island reactor underscores a renewed focus on nuclear energy as a viable option for meeting future energy demands while addressing climate change. The partnership between Microsoft and Constellation Energy may pave the way for similar collaborations in the tech industry as companies seek sustainable energy solutions.
