Microsoft’s Nuclear Deal STUNS Experts

Microsoft sign with office buildings and trees

Pennsylvania’s Three Mile Island nuclear facility is set to reopen a year earlier than expected, creating thousands of jobs and generating $16 billion for the state’s economy, as tech giants like Microsoft turn to nuclear power for their energy-hungry AI operations.

Key Takeaways

  • The Crane Clean Energy Center (formerly Three Mile Island Unit 1) will restart operations in 2027, creating 3,400 direct and indirect jobs and adding 835 megawatts to the power grid.
  • Microsoft has signed a 20-year power purchase agreement with Constellation Energy to fuel its data centers, signaling the tech industry’s pivot toward nuclear energy.
  • The $1.6 billion investment is projected to boost Pennsylvania’s GDP by $16 billion while providing enough clean energy to power 800,000 homes.
  • This revival represents a strategic shift as America’s electricity demands from AI and data centers are expected to increase by 130% from 2024 to 2030.
  • The Crane Clean Energy Center is separate from Unit 2, which experienced the famous 1979 partial meltdown and remains permanently shut down.

Nuclear Power Makes a Comeback to Meet Tech Industry Demands

The Three Mile Island nuclear reactor, offline since 2019 and now rebranded as the Crane Clean Energy Center, is set to resume operations by 2027 under Constellation Energy Corporation’s ownership. This accelerated timeline comes as tech giants like Microsoft increasingly seek reliable, carbon-free energy sources to power their expanding data center operations. The revival of this nuclear facility represents a significant shift in America’s energy strategy, as the tech sector’s electricity needs soar due to the rapid expansion of artificial intelligence capabilities and cloud computing services.

The facility’s 835-megawatt capacity will provide enough electricity to power approximately 800,000 homes, directly addressing growing concerns about energy security and grid reliability. This development comes at a crucial time when U.S. electricity consumption from AI and data centers is projected to surge by 130% between 2024 and 2030. The partnership between Constellation and Microsoft highlights the strategic importance of nuclear power in balancing economic growth with environmental concerns in an increasingly digital economy.

Economic Renaissance Through Nuclear Innovation

Constellation Energy’s $1.6 billion investment in the Crane Clean Energy Center will create an economic ripple effect throughout Pennsylvania. The project is expected to generate 3,400 jobs, including over 400 permanent positions at the facility itself. These high-paying jobs will revitalize local communities that have felt the economic impact of the plant’s closure since 2019. Additionally, the reactivation will contribute substantial tax revenue to local governments, supporting essential public services and infrastructure development.

“Folks shouldn’t sleep on nuclear,” said Gov. Josh Shapiro. “Pennsylvania is on the rise.”

The nuclear facility’s reopening is projected to boost Pennsylvania’s GDP by an impressive $16 billion over its operational lifespan. Constellation has also committed to investing $1 million in the Harrisburg community over the next five years, demonstrating corporate responsibility alongside economic development. This investment in local communities reflects the broader benefits of nuclear energy beyond power generation, creating sustainable economic growth while providing clean, reliable electricity.

Tech Giants Embrace Nuclear Solutions

Microsoft’s 20-year power purchase agreement with Constellation Energy signals a significant trend in how technology companies are addressing their enormous energy requirements. As data centers consume increasing amounts of electricity to power AI applications and cloud services, tech giants are turning to nuclear power as a reliable, around-the-clock energy source that doesn’t produce carbon emissions. This strategic partnership represents a win-win situation, providing Microsoft with the energy security it needs while giving Constellation the financial certainty required to restart the nuclear facility.

“You wonder why I’m passionate about nuclear energy. My father … was here from the original build of Unit 1 and Unit 2, and as a kid, that plant put meals on my table, a roof over my head, clothes on my back. That would not have happened without nuclear energy,” said Rob Bair.

This trend extends beyond Microsoft, with Constellation also securing an agreement with Meta Platforms to supply nuclear power from its Clinton Clean Energy Center in Illinois starting in 2027. With nuclear energy currently providing approximately 18% of America’s power in 2024, these partnerships indicate growing recognition of nuclear’s essential role in America’s energy mix. The revival of shuttered nuclear plants represents a pragmatic approach to meeting our increasing energy demands while supporting President Trump’s commitment to American energy independence and economic growth.