Constellation Energy has announced a 20-year power purchase agreement with Microsoft to power the tech giant’s AI endeavours with carbon-free energy.
This agreement will support the relaunch of the Three Mile Island nuclear plant, specifically Unit 1, which was shut down five years ago due to economic challenges.
The plant will be rebranded as the Crane Clean Energy Center (CCEC) and is expected to play a pivotal role in providing reliable, clean energy to power Microsoft’s data centres and contribute to the energy grid.
A historic comeback for the Three Mile Island nuclear plant
The Three Mile Island nuclear plant, once considered one of the safest and most reliable energy producers in the US, is set to return to service.
Unit 1 of the plant, which was originally retired in 2019, will undergo extensive renovations as part of the CCEC project.
The plant’s return comes after Microsoft committed to purchasing energy from the facility as part of its larger goal to match its data centre operations with carbon-free power sources.
Microsoft’s Vice President of Energy, Bobby Hollis, highlighted the importance of this agreement in advancing Microsoft’s decarbonisation strategy.
“This agreement is a major milestone in Microsoft’s efforts to help decarbonise the grid in support of our commitment to become carbon negative,” Hollis said.
The revived Three Mile Island Unit 1 will be renamed the Crane Clean Energy Center, honouring Chris Crane, the former CEO of Constellation’s parent company.
Crane, who passed away in April 2024, was a staunch advocate for nuclear energy and played a pivotal role in shaping the industry.
During his career, he helped build critical organisations like the Institute for Nuclear Power Operations (INPO) and served on the boards of the Nuclear Energy Institute (NEI) and the World Association of Nuclear Operators (WANO).
Major investments in upgrades
Restarting the Three Mile Island nuclear plant is no small feat. Constellation plans to make major investments in the plant’s infrastructure, including upgrades to the turbine, generator, main power transformer, and cooling systems.
Before the facility can return to operation, it must undergo comprehensive safety and environmental reviews by the U.S. Nuclear Regulatory Commission, as well as receive necessary state and local permits.
Constellation also aims to extend the plant’s operational license until at least 2054, ensuring the plant’s contribution to Pennsylvania’s energy grid for decades to come.
The plant is scheduled to be fully operational by 2028, providing over 800 megawatts of carbon-free electricity to the grid.
Economic and environmental benefits for Pennsylvania
The revitalisation of the Three Mile Island nuclear plant is expected to bring substantial economic benefits to Pennsylvania.
A recent report from The Brattle Group estimates that the Crane Clean Energy Center will contribute $16bn to the state’s GDP and generate more than $3bn in state and federal tax revenues.
In addition, the project is expected to create 3,400 direct and indirect jobs, providing a major boost to the local economy.
Rob Bair, President of the Pennsylvania State Building and Construction Trades Council, emphasised the long-term impact of the CCEC: “The CCEC will support thousands of family-sustaining jobs for decades to come.
“It will help make Pennsylvania a leader in attracting and retaining the types of reliable, clean energy jobs that will define the future.”
Strong public support for nuclear energy
Public opinion in Pennsylvania is overwhelmingly in favour of restarting the Three Mile Island nuclear plant.
A recent poll conducted by Susquehanna Polling & Research found that state residents support the plant’s reopening by a 2-to-1 margin.
The poll also revealed that 70% of Pennsylvanians back the continued use of nuclear energy as a source of reliable, carbon-free power.
The renewed interest in nuclear energy is not limited to Pennsylvania. Globally, nations are increasingly looking to nuclear power as a key component in their efforts to transition to cleaner energy sources and combat climate change.
Nuclear energy is unique in its ability to provide consistent, carbon-free power 24/7, regardless of weather conditions, making it an essential part of the global energy transition.
A new era for Three Mile Island
The restart of the Three Mile Island nuclear plant marks a new chapter in Pennsylvania’s energy landscape.
With the backing of Microsoft and the commitment of Constellation Energy, the Crane Clean Energy Center is set to become a cornerstone of the state’s clean energy future.
By 2028, this historic facility will once again generate reliable, carbon-free electricity, contributing to both economic growth and environmental sustainability.
As the world moves toward a more electrified and digital economy, the role of nuclear energy in powering data centres, industries, and homes will continue to grow.
