Microsoft-Backed Loan Revives Three Mile Island Nuclear Reactor

The Trump administration announced Tuesday it would provide Constellation Energy with a $1 billion loan to restart a nuclear reactor at Three Mile Island. The energy company said last year it would reopen the reactor, which had been shuttered since 2019, after Microsoft committed to purchasing all the electricity from the 835 megawatt power plant for two decades. Constellation estimated the project would cost $1.6 billion, and it expects to complete the refurbishment in 2028. According to analysts at Jefferies, Microsoft might be paying about $11 to $11.50 per megawatt-hour over 20 years of the deal, which is cheaper than the cost of a brand-new nuclear power plant but a hefty premium over wind, solar, and geothermal energy. "This deal highlights the growing interest in nuclear energy among tech companies, particularly those with significant data center operations," said a Jefferies analyst. "As their power demands continue to skyrocket, they're looking for reliable and long-term energy solutions, and nuclear fits the bill." Constellation Energy's decision to restart the Three Mile Island reactor is part of a broader trend in the tech industry, with companies like Meta signing similar deals with energy providers. This summer, Meta purchased clean energy attributes from Constellation, demonstrating the growing demand for reliable and sustainable energy sources. "The tech industry is driving the demand for clean energy, and we're seeing companies like Microsoft and Meta invest in nuclear power as a key component of their sustainability strategies," said a spokesperson for Constellation Energy. The Three Mile Island reactor, located in Pennsylvania, has been offline since 2019 due to maintenance and safety concerns. The reactor's refurbishment will involve significant upgrades to its cooling systems, containment structures, and other critical components. Once completed, the reactor will be capable of producing 835 megawatts of electricity, enough to power approximately 750,000 homes. The $1 billion loan from the Trump administration will help fund the refurbishment project, which is expected to be completed in 2028. The loan is part of a larger effort by the administration to support the development of nuclear energy in the United States. "This loan is a critical step in revitalizing the nuclear industry, which has the potential to provide reliable and clean energy to millions of Americans," said a spokesperson for the Department of Energy. The deal between Microsoft and Constellation Energy has significant implications for the tech industry, as it highlights the growing interest in nuclear energy among companies with significant data center operations. As the demand for clean energy continues to grow, companies like Microsoft and Meta are likely to play a key role in driving the development of nuclear energy in the United States.