Microsoft selects a notorious nuclear site for AI power

Microsoft selects a notorious nuclear site for AI power

The Three Mile Island energy plant, infamous for hosting the most significant nuclear accident in US history, is set to resume operations as Microsoft seeks solutions to meet its increasing energy demands.

The technology powerhouse announced it has finalized a 20-year agreement to acquire energy from the Pennsylvania facility. Following enhancements, the facility will resume operations in 2028.

The agreement aims to supply the company with a sustainable energy source, addressing the growing demands of power-intensive data centers for artificial intelligence (AI) as they increase.

The proposal is set to be submitted to regulatory authorities for their endorsement.

Constellation Energy, the plant’s owner, announced that the reactor it intends to restart is adjacent to yet “fully independent” from the unit involved in the 1979 incident.

The incident resulted in no injuries or fatalities; however, it instigated significant fear and mistrust within the American public, ultimately hindering the advancement of nuclear power in the United States for many years.

Amid escalating concerns regarding climate change, there is a resurgence of interest in nuclear energy. This shift comes as companies increasingly seek more energy to support advancements in artificial intelligence.

On Friday, Joe Dominguez, the chief executive of Constellation, addressed analysts, describing the deal as a “powerful symbol of the rebirth of nuclear power as a clean and reliable energy resource.”

“Before its untimely closure attributed to economic challenges, this facility was recognized as one of the safest and most dependable nuclear plants. We are eager to revive it under a new name and with a refreshed purpose,” he stated in a press release regarding the agreement.

He stated that nuclear plants represent the “only energy sources” capable of reliably providing an “abundance” of carbon-free energy.

Microsoft has referred to it as a significant achievement in its initiatives to reduce carbon emissions in the energy sector.

On March 28, 1979, a partial meltdown occurred at a central Pennsylvania nuclear power plant, attributed to mechanical failure and human error.

At approximately 04:00, an accident took place at the second unit of the Three Mile Island plant.

Unit 1 of the plant, set to resume operations as part of the Microsoft agreement, remained operational and produced power until its closure in 2019.

The owner at the time, Exelon, which separated Constellation as an independent entity in 2022, stated that the low cost of natural gas extraction rendered nuclear-generated electricity unprofitable.

Constellation announced plans to invest $1.6 billion (£1.2 billion) in upgrading the facility, intending to seek approval for operations extending until 2054.

The plant’s reopening is projected to generate 3,400 direct and indirect jobs while contributing over 800 megawatts of carbon-free electricity to the grid. This initiative is expected to result in billions of dollars in taxes and additional economic activity, as highlighted in a study by The Brattle Group, which Constellation references.

Earlier this month, local media indicated that the potential revival had sparked protests from some community members.

Microsoft is joining many tech companies that are exploring nuclear power to meet their increasing energy demands.

Earlier this year, Amazon entered into an agreement to acquire nuclear energy to operate a data center. The plans are currently being examined by regulatory authorities.

 

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