Microsoft Buys A Nuclear Power Plant For Running AI Operations


Sheetal Bhalerao

Sheetal Bhalerao

Sep 23, 2024


In a recent update, Constellation Energy struck a deal to provide power to Microsoft’s proliferating artificial intelligence operations.

Microsoft Buys A Nuclear Power Plant For Running AI Operations

Restart Of A Nuclear Reactor

As a result, a nuclear reactor at the notorious Three Mile Island site in Pennsylvania is to be activated for the first time in five years after its owners, Constellation Energy struck this deal.

This plant has a history as it was the location of the most serious nuclear meltdown and radiation leak in US history, in March 1979.

It appears that the loss of water coolant through a faulty valve caused the Unit 2 reactor to overheat which caused the trigger to that event.

The reactor is still in a decommissioning phase after more than four decades.

During 2019, Constellation decided to close the adjacent but unconnected Unit 1 reactor concerning economic reasons.

Now, the American energy company is planning to bring it back to life after signing a 20-year power purchase agreement to supply Microsoft’s energy-hungry data centers, as its announcement on Friday.

For The First Time

According to the Constellation, the first time a nuclear reactor in the US has been recommissioned after closure.

After restart, this reactor will send an additional 835 megawatts of power to the Pennsylvania grid, create 3,400 jobs and contribute at least $16bn to the state’s economy.

Three Mile Island will also be renamed the Crane Clean Energy Center to recognize Chris Crane, who is the former chief executive of Constellation’s parent company, under this agreement.

Further, the president and current chief executive of Constellation, Joe Dominguez said, “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.”

It is noteworthy here that a significant amount of  investment will be required to restore the plant.

This includes replacing or refurbishing the turbine, generator, main power transformer and cooling and control systems, Dominguez added.

Safety Reviews & Licenses

They will also take care of the safety as there will also be a comprehensive safety and environmental review by the US Nuclear Regulatory Commission before it issues a permit for the restart of the reactor.

This review is scheduled to be online sometime in 2028.

Besides this, the energy company would a

So seek licenses that will extend plant operations to at least 2054.

In the meantime the Tech giants such as Microsoft, Google, Amazon, Meta and Apple continue to consume ever-greater amounts of energy to power the boom in artificial intelligence. 

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Sheetal Bhalerao
Sheetal Bhalerao
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