Microsoft-Backed Plan to Reboot Three Mile Island Reactor Gets $1B Boost

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 Constellation, the project will involve significant upgrades to the reactor, including the replacement of key components and the implementation of new safety features. The company has stated that the loan from the Trump administration will be used to cover a significant portion of the project's costs. Microsoft's commitment to purchasing electricity from the plant at a rate estimated to be around 11-12 cents per kilowatt-hour over 20 years has been seen as a key factor in the project's viability. Industry analysts have noted that while the cost of purchasing electricity from the Three Mile Island plant is higher than that of wind, solar, and geothermal sources, it is still lower than the cost of building a brand-new nuclear power plant. Analysts at Jefferies have estimated that Microsoft might be paying around 11-12 cents per kilowatt-hour over 20 years, which is a significant premium over the cost of renewable energy sources. However, the cost of purchasing electricity from the Three Mile Island plant is still seen as a competitive option for tech companies with high energy demands. The deal between Constellation and Microsoft is part of a growing trend of tech companies investing in nuclear energy. This summer, Microsoft competitor Meta signed its own deal with Constellation, buying the clean energy attributes from the company's nuclear power plants. The trend is driven by the increasing energy demands of data centers and AI efforts, which require large amounts of electricity to operate. The Three Mile Island plant has been shut down since 2019, and the restart of the reactor is seen as a significant development for the nuclear industry. The plant's reactor is expected to be refurbished and upgraded to meet modern safety standards, and the project is expected to be completed by 2028. The loan from the Trump administration will be used to cover a significant portion of the project's costs, and the deal between Constellation and Microsoft is seen as a key factor in the project's viability. In a statement, a spokesperson for Constellation said, "We are pleased to have reached an agreement with the Trump administration to provide a $1 billion loan to support the restart of the Three Mile Island reactor. This project will provide a significant source of clean energy to Microsoft and other customers, and will help to meet the growing demand for electricity in the region." A spokesperson for Microsoft declined to comment on the deal, citing the company's policy of not discussing its energy purchasing agreements. The restart of the Three Mile Island reactor is seen as a significant development for the nuclear industry, and is part of a growing trend of tech companies investing in nuclear energy. The project is expected to be completed by 2028, and will provide a significant source of clean energy to Microsoft and other customers.