Stigma of Nuclear Energy All But Gone with Microsoft Plan to Reopen Three Mile Island to Power AI

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Constellation Energy has announced plans to restart the Unit 1 reactor at Three Mile Island in Pennsylvania, which has been closed since 2019. The majority of the power from the reactor will be purchased by Microsoft in a 20-year deal to support its AI data centers.

The reactor is set to be reopened despite the historical concerns surrounding nuclear energy, particularly after the partial meltdown of Unit 2 at the same site in 1979. However, Constellation and Microsoft are promoting nuclear power as a clean, carbon-free energy source for the future.

Key Facts:

  • Constellation Energy will invest $1.6 billion to restart the Unit 1 reactor at Three Mile Island, aiming to keep it operational until 2054.
  • Microsoft has signed a 20-year deal to buy most of the plant’s energy to power its data centers, amounting to about 835 megawatts.
  • The reactor’s reopening will create 3,400 jobs and is projected to add $16 billion to Pennsylvania’s economy.
  • Nuclear energy, once considered hazardous, is being positioned as a clean and reliable energy source by Constellation and Microsoft.
  • Environmental critics remain concerned about the risks associated with nuclear energy, including waste and potential safety issues.

The Rest of The Story:

Three Mile Island is known for the partial nuclear meltdown that occurred in 1979, but the Unit 1 reactor that is being reopened was unaffected by that incident. After closing in 2019, the reactor is being revived by Constellation Energy with a $1.6 billion investment. The plant will be renamed the Crane Clean Energy Center after Constellation’s former CEO, Chris Crane.

Microsoft, in a bid to power its expanding data centers and artificial intelligence operations, has entered into a 20-year agreement to purchase the vast majority of the plant’s energy output. This nuclear deal will supply Microsoft with about 835 megawatts of power, nearly all of the reactor’s capacity. Constellation CEO Joe Dominguez has framed this as a major step in the rebirth of nuclear power, calling it a “clean and reliable energy resource” that can fuel America’s future energy needs.

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Despite the positive economic impact and the environmental benefits touted by Constellation, nuclear power remains controversial. Critics like Stanford professor Mark Z. Jacobson argue that nuclear energy is expensive, takes too long to develop, and carries risks related to waste, safety, and environmental health.

Microsoft’s estimated $800 million per year for total of $16 billion energy bill over 20 years reveals the high cost of nuclear power, even as it is positioned as a long-term solution for energy-intensive industries like data centers.

The reopening of the power plant will boost the local economy. State Rep. Tom Mehaffie (R) said, “This will transform the local economy and presents a rare opportunity to power our economy with reliable clean energy that we can count on.”

Mehaffie, whose district contains the power plant continued, “This is a rare and valuable opportunity to invest in clean, carbon-free and affordable power — on the heels of the hottest year in Earth’s history.”

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Commentary:

It is noteworthy that nuclear energy is being embraced more widely now, especially with Bill Gates and Microsoft behind the Three Mile Island deal. Gates, long an advocate for green energy through his company Breakthrough Energy, is turning to nuclear power, indicating a shift in how big tech views its energy needs.

What’s surprising is the lack of public opposition to this decision, especially considering nuclear energy’s controversial past. There are no protests at the plant’s reopening, and the media coverage has largely focused on the economic benefits and clean energy narrative, rather than the potential downsides, like waste management and safety concerns.

The fact that there has been little to no backlash suggests that public sentiment toward nuclear power may be changing. With big names like Microsoft involved, nuclear energy is now being framed as essential to the green energy movement — a narrative that would have been unthinkable just a few years ago.

The Bottom Line:

The reopening of Three Mile Island’s Unit 1 reactor marks a significant moment in the resurgence of nuclear energy in the U.S. Backed by Constellation Energy and Microsoft, this deal highlights the growing role of nuclear power as a supposedly clean and reliable energy source. While the economic benefits are clear, critics continue to raise concerns about nuclear energy’s risks, costs, and long-term sustainability.

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As nuclear power re-enters the mainstream, its future remains a topic of debate, especially as tech giants begin to depend on it for their energy needs.

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