(CNN) – Three Mile Island, the site of the worst nuclear disaster in the United Stateswill reopen and exclusively sell the power to Microsoft as the company looks for power sources to manage its artificial intelligence ambitions.
Constellation Energy announced Friday that its Unit 1 reactor, which shut down five years ago, is expected to be restarted in 2028, pending approval from the Nuclear Regulatory Commission. Microsoft will buy the carbon-free energy produced from it to power its data centers and thus operate its artificial intelligence.
Financial terms of the 20-year deal, which Constellation called the largest in history, were not disclosed.
”Operating the industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that they can consistently deliver on that promise,” Constellation CEO Joe Dominguez said in a press release.
Clean energy advocates and businesses alike are looking toward nuclear power as a carbon-free energy source that is a strong reliable base load. A great advantage is that nuclear energy can remain at all times day and night unlike wind and solar energy.
However, nuclear power has drawn criticism from environmental groups for decades over its waste. The United States still does not have a permanent repository for this waste, but instead stores it in more than 70 operational and closed plants throughout the country.
The reopening of the Unit 1 reactor will add 3,400 direct and indirect jobs and add more than 800 megawatts of electricity to the grid, according to Constellation. It is also expected to add $16 billion to the GDP of Pennsylvania, where the silver is located.
Constellation shares (CEG) increased 7% in pre-market trading.
Three Mile Island, located near Harrisburg, is best known for being the site of the most serious accident at a commercial nuclear power plant in United States history when it experienced the partial collapse of one of its two reactors. The Unit 2 reactor, which is located next to Unit 1, has been closed since 1979 after the disaster.
Energy demand is expected to increase as tech giants need more energy sources to fuel their AI needs, especially nuclear power, which is carbon-free and helps them maintain their lofty climate goals.
The move is also made possible by President Joe Biden’s climate bill, which contains billions in tax credits to incentivize clean energy from nuclear, as well as wind, solar and clean hydrogen. The Biden administration and Congress have also invested billions of dollars in funding to stop aging plants slated for closure.
”This agreement is an important milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to becoming carbon negative,” Bobby Hollis, vice president of energy at Microsoft, said in the statement.
With information from Ella Nilsen
