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In a bold move that underlines the tech industry’s shift toward clean energy, Microsoft is seeking to secure carbon-free electricity for its data centers to power the growing demands of artificial intelligence (AI). As part of this initiative, Constellation Energy, the largest operator of nuclear reactors in the U.S., announced plans to invest up to $1.6 billion to restart the previously decommissioned Three Mile Island nuclear plant in Pennsylvania.
What makes this collaboration unique is that Microsoft has committed to purchasing the plant’s entire output for a period of 20 years, marking the first time the company has exclusively secured a nuclear facility to power its extensive data centers. This move reflects the increasing interest in nuclear energy amid the rising demand for electricity driven by the proliferation of AI, which could potentially jeopardize Microsoft’s goal of achieving carbon neutrality by 2030.
Nuclear Power and AI Growth
Microsoft’s investment in nuclear energy is part of its broader strategy to source sustainable, clean energy, especially nuclear power, which provides continuous, carbon-free electricity. With the surging demand for cloud computing and AI applications, tech companies face a critical challenge in securing energy sources that can meet these growing needs without exacerbating environmental harm.
According to Bobby Hollis, Microsoft’s Vice President of Energy, the deal will significantly contribute to powering its vast network of data centers with clean energy by 2025. Nuclear power is expected to play a central role in supplying energy to data centers in key regions, including Chicago, Virginia, Pennsylvania, and Ohio.
Reviving Nuclear Plants to Meet Rising Demand
The Three Mile Island nuclear plant, which experienced one of the worst nuclear incidents in U.S. history, initially saw one of its units shut down nearly half a century ago. The plant’s second unit was closed in 2019 due to economic challenges. However, this new effort comes at a crucial time, as over ten nuclear reactors have been shuttered over the past decade, primarily due to competition from cheaper natural gas and renewable energy sources.
With growing demand for electricity—driven particularly by the expansion of data centers and AI applications—nuclear reactors, which provide reliable, carbon-free power, are regaining attention. The Three Mile Island facility is expected to return to operational status by 2028, a development that will represent Constellation Energy’s largest power purchase agreement. Once operational, the plant will provide enough electricity to power 800,000 homes.
Nuclear Competition Among Tech Giants
Microsoft isn’t the only tech giant eyeing nuclear energy as a sustainable solution for its AI ambitions. Earlier this year, Amazon announced its plan to invest $650 million in purchasing a data center complex connected to the Susquehanna Nuclear Station, which is operated by Talen Energy.
This renewed interest marks a significant shift for the nuclear energy industry, which had previously seen a decline due to competition from renewable energy sources and natural gas. However, with the escalating power demands of large-scale data centers and cloud computing, many tech companies are looking to nuclear as a sustainable, long-term energy solution.
The partnership between Microsoft and Constellation Energy is a pioneering step toward a future where AI is powered primarily by clean and sustainable energy sources. As the demand for massive amounts of electricity continues to rise to support giant data centers, nuclear energy—which had once been sidelined as outdated or economically unfeasible—is reemerging as an innovative and sustainable option.
By embracing nuclear power, Microsoft aims to meet its ambitious carbon neutrality goals by 2030 while expanding its capabilities in AI. This move is not only a step toward a cleaner future but also a signal of the potential for long-lasting impact on the nuclear energy industry and AI technologies alike.