U.S. Department of Energy Approves Funding
The U.S. Department of Energy has granted a $1 billion loan to Constellation Energy for the revival of the Three Mile Island nuclear reactor located in Pennsylvania. This facility is set to provide power for Microsoft’s data centers under a long-term agreement.
Constellation Energy plans to utilize these funds to reactivate the dormant 835-megawatt reactor, which has the capacity to supply electricity to around 800,000 homes.
Microsoft has committed to a 20-year contract for energy sourced from this reactor, ensuring a stable power supply for its operations.
The overall expenditure required for restarting the reactor is estimated at $1.6 billion, with operations anticipated to commence in 2027.
The reactor was taken offline in 2019 by Exelon, Constellation Energy’s former parent company, due to financial difficulties. Notably, Three Mile Island was also the site of the most significant commercial nuclear accident in U.S. history back in 1979, which resulted in one of its reactors being destroyed.
Constellation Energy has since rebranded the operational unit as the Crane Clean Energy Center and is actively working on restoring essential equipment such as turbines, generators, and cooling systems.
This loan forms part of a broader $250 billion energy infrastructure initiative authorized by Congress in 2022. It underscores an increasing endorsement of nuclear energy as a viable solution for meeting escalating energy demands from data centers while addressing climate change challenges.
