In a landmark development highlighting the massive energy demands of artificial intelligence, Constellation Energy has signed a 20-year deal with Microsoft to reopen part of the infamous Three Mile Island nuclear plant in Pennsylvania by 2028. The agreement will see Constellation invest $1.6 billion to refurbish and restart one of the facility’s two reactors, specifically to power Microsoft’s expanding AI data center operations.
The Three Mile Island site carries significant historical weight as the location of one of the worst nuclear disasters in US history. In 1979, a system malfunction caused a partial meltdown of one reactor, which was permanently closed following the incident. However, the second reactor continued operating safely until its closure in 2019 due to economic factors. It is this second, undamaged reactor that Constellation plans to bring back online to meet the surging power requirements of AI infrastructure.
This partnership represents a growing trend among tech giants turning to nuclear energy as a solution for their energy-intensive AI operations. Microsoft, which has invested billions in artificial intelligence through its partnership with OpenAI, has been actively exploring nuclear power options. Job postings from the company last year already hinted at this strategic direction, signaling Microsoft’s commitment to securing reliable, carbon-free energy sources for its AI ambitions.
Bobby Hollis, Microsoft’s vice president of energy, told Bloomberg that the Three Mile Island reactor would be instrumental in helping Microsoft achieve its ambitious goal of becoming carbon-negative by 2030. The energy generated from the reopened facility will specifically support data-center expansion throughout Pennsylvania and neighboring states, directly powering the infrastructure behind AI services like ChatGPT and other machine learning applications.
The move comes amid mounting concerns about AI’s environmental impact. Training and running large language models and other AI systems require enormous amounts of electricity, water for cooling, and generate substantial carbon emissions. This has sparked a wave of data center construction across the United States, intensifying debates about the sustainability of rapid AI development and deployment.
Key Quotes
The Three Mile Island reactor would help Microsoft meet its target of being carbon-negative by 2030 and that energy from the site would be used for data-center expansion in Pennsylvania and nearby states.
Bobby Hollis, Microsoft’s vice president of energy, explained to Bloomberg how the nuclear partnership aligns with the company’s ambitious climate goals while supporting its aggressive AI infrastructure expansion plans.
The AI models behind chatbots like ChatGPT require huge amounts of energy to train and run.
This statement highlights the fundamental challenge driving Microsoft’s nuclear energy strategy—the massive computational and energy requirements of large language models and other AI systems that have become central to the company’s product offerings.
Our Take
Microsoft’s nuclear gambit represents a fascinating collision of cutting-edge AI technology with one of the most controversial energy sources in modern history. The irony of reviving Three Mile Island—a name synonymous with nuclear anxiety—to power the AI revolution speaks volumes about how desperate tech companies have become to secure reliable, carbon-free energy at scale. This deal essentially acknowledges that renewable energy sources alone cannot meet AI’s voracious appetite for power, at least not quickly enough to match the industry’s breakneck expansion pace. While nuclear energy offers a carbon-free solution, the $1.6 billion price tag and six-year timeline raise questions about whether the AI boom is sustainable or if we’re witnessing an energy arms race that could reshape both the tech and energy sectors for decades to come.
Why This Matters
This development marks a pivotal moment in the intersection of AI technology and energy infrastructure. As artificial intelligence becomes increasingly central to business operations and consumer services, the industry faces a critical challenge: how to power exponentially growing computational demands without devastating environmental consequences.
Microsoft’s decision to revive a nuclear reactor specifically for AI workloads underscores the extraordinary scale of energy consumption required by modern AI systems. This isn’t just about incremental power increases—it represents a fundamental shift in how tech companies approach infrastructure planning. The $1.6 billion investment and 20-year commitment signal that major players view nuclear energy as essential to their AI strategies, not merely as an experimental option.
The choice of Three Mile Island carries symbolic weight, potentially helping to rehabilitate nuclear energy’s reputation while addressing legitimate climate concerns. If successful, this partnership could establish a blueprint for other tech companies struggling to balance AI ambitions with sustainability commitments. It also raises important questions about energy policy, grid capacity, and whether the AI boom will drive a broader nuclear renaissance in the United States.
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