Microsoft to reopen meltdown nuclear plant for AI energy needs

Microsoft and Constellation Energy have struck a historic agreement to restart the partially melted-down Three Mile Island nuclear plant, with Microsoft committing to purchase all generated power for the next 20 years.

This marks the first instance of a decommissioned U.S. nuclear facility being brought back into operation, as well as the first time a commercial plant's entire output is designated for a single customer, according to Xinhua news agency.

The initiative aims to support the increasing energy demands of Microsoft's artificial intelligence (AI) initiatives while reviving the notorious Pennsylvania site, known for the worst nuclear disaster in U.S. history.

Constellation Energy, the plant's owner, plans to restart Three Mile Island Unit 1 by 2028 at an estimated cost of $1.6 billion. This unit is adjacent to the reactor that experienced a partial meltdown in 1979, which caused widespread alarm and severely impacted the nuclear industry.

Joseph Dominguez, CEO of Constellation, stated in a press release that the nuclear facility should never have been decommissioned, claiming it could generate as much clean energy as all renewable sources developed in Pennsylvania over the past three decades.

Once operational, the facility is expected to provide Microsoft with 835 megawatts of electricity, enough to power approximately 800,000 homes.

The U.S. Nuclear Regulatory Commission noted that on March 28, 1979, a combination of equipment failures and human errors led to the partial meltdown of Unit 2 at Three Mile Island, resulting in the release of radioactive gases. Fortunately, there were no direct injuries or fatalities linked to the incident. Unit 2 remains sealed, with its radioactive core encased in concrete.

The revival of Three Mile Island reflects a growing trend among tech companies seeking dependable, zero-emission energy to fuel their data centers and AI technologies.

However, Microsoft's plans are facing significant regulatory challenges and public skepticism. Constellation must undergo rigorous safety inspections by the U.S. Nuclear Regulatory Commission, which has never authorized the reopening of a nuclear plant before. The company anticipates completing this review by 2027.

Additionally, the project has sparked debates over federal subsidies, as it relies heavily on tax incentives from the 2022 Inflation Reduction Act. Critics argue that using public funds for a private corporation may be inappropriate.

Reactions on social media have been mixed. One commenter on the Washington Post website quipped, "OK, as long as the waste is sent to Microsoft HQ in Redmond, WA." Another user on The Verge voiced concerns about the implications of the project, suggesting that the energy demands could hinder the transition to carbon-free sources.

Some local leaders have welcomed the potential economic benefits, with a study funded by the Pennsylvania Building and Construction Trades Council projecting the creation of 3,400 jobs and $3 billion in state and federal taxes.

Pennsylvania Governor Josh Shapiro expressed support for the project, highlighting its potential to utilize existing infrastructure to enhance nuclear power in the state while creating numerous energy jobs.

Yet, nuclear safety advocates have raised alarms. Henry Sokolski, a former Pentagon official, criticized the reliance on public subsidies, asserting, "Microsoft wants ratepayers and taxpayers to cover the costs of refurbishing the plant while claiming it will buy all of the nuclear electricity produced."