Microsoft Bought a Nuclear Plant
Microsoft has signed a deal to purchase power from the Three Mile Island nuclear plant, which is set to restart operations. The tech giant aims to secure carbon-free energy to power its growing data center infrastructure, including AI operations. The agreement marks a significant step in the revival of nuclear energy for corporate tech use.
Background
- Microsoft signed a Power Purchase Agreement (PPA) to restart Unit 1 of the Three Mile Island nuclear plant in Pennsylvania, marking the first-ever restart of a shuttered U.S. nuclear reactor.
- Three Mile Island is infamous for the 1979 partial meltdown (the worst U.S. nuclear accident), but Unit 1 was a separate reactor that operated safely until 2019, when it was closed for economic reasons.
- The plant's owner, Constellation Energy, plans to invest $1.6 billion to refurbish and reopen it by 2028, pending regulatory approval.
- The deal is driven by Microsoft's massive and growing electricity demand from AI data centers, which require 24/7 carbon-free power that nuclear can provide — unlike intermittent solar or wind.
- This is part of a broader trend: Big Tech companies are increasingly turning to nuclear energy to meet both their climate goals and the enormous power needs of AI compute infrastructure.