The Three Mile Island nuclear power plant, infamous for its partial nuclear meltdown in 1979, may soon have a new owner. Microsoft has inked a power purchase agreement with the current owner, Constellation, and the deal is now pending regulatory approval. If successful, Microsoft will secure exclusive rights to 100% of the plant's output for 20 years, which will be dedicated to fueling its AI data center needs.
Interestingly, the plant is situated next to a unit that was shut down in 1979 following the Three-Mile Island accident but was retired in 2019. Microsoft plans to reopen this unit if the sale proceeds, expecting it to generate 837 megawatts of energy—sufficient to power over 800,000 homes. This energy will primarily support Microsoft's AI initiatives and data centers, which demand substantial resources to operate.
This renewed focus on AI has led to increased greenhouse gas emissions from Microsoft, despite the company's previous commitment to reducing its carbon footprint. However, Microsoft asserts that the nuclear power plant will aid its transition to clean energy. "This agreement is a significant milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative," stated Bobby Hollis, Microsoft's vice president of energy, in an interview with The Verge. "Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to meet the grid's capacity and reliability needs."
Constellation intends to invest $1.6 billion to revive the plant, subject to approval from the Nuclear Regulatory Commission and other local agencies. Microsoft has previously outlined its plans to heavily invest in AI. Tim Stuart, the CFO of Xbox, recently discussed how AI is expected to shape the future of gaming at Xbox, and the company is developing an AI-powered chatbot for the platform.
