Microsoft’s Next Power Source for AI Data Centers Is Nuclear

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Microsoft's Next Power Source for AI Data Centers Is Nuclear

Three Mile Island, the three-mile-long nuclear power plant near Harrisburg, Pennsylvania, has been closed since 2019. Now the island is scheduled to reopen by 2028 to power Microsoft's data centers, which are fundamental to the tech giant's AI and cloud computing businesses.

Constellation Energy, the plant's owner, announced the 20-year deal Friday that will see Microsoft buy energy from the restored plant. Restarting the plant represents a $1.6 billion investment to revive it, make sure everything is up to code and obtain the necessary permits and licenses. But the payoff is significant — the plant could directly and indirectly create 3,400 new jobs and add $16 billion to Pennsylvania's GDP.

Microsoft's decision to switch to nuclear power is a sign of how much energy is needed to power the AI ​​boom. According to Bloomberg, AI has increased demand for carbon-free electricity – and Microsoft's decision to buy nuclear power for 20 years – the first agreement of its kind signed by the tech giant – is the latest step to meet that need.

Three Mile Island. Photo credit: Getty Images

Since the agreement was announced, opinions have been divided on how to proceed. Pennsylvania Governor Josh Shapiro supports the agreement and wants to “speed it up.” However, residents of Perry County, Pennsylvania, are writing letters to the newspaper demanding that the problem of nuclear waste and byproducts be resolved before the plant opens.

Related: How much does AI development and training cost? Too much.

Dr. Michael Goff, deputy secretary of the Department of Energy’s Office of Nuclear Energy, called the restart “an important milestone.”

“Always available, carbon-free nuclear energy plays an important role in combating climate change and meeting the country’s growing energy needs,” Goff said.

Three Mile Island was once known as the site of the worst commercial nuclear power plant accident in U.S. history. In March 1979, a nuclear meltdown occurred in part of the plant, releasing small amounts of radioactivity. The incident led to stricter regulations and caused public confidence in nuclear power to decline in the decades that followed. However, the accident resulted in no injuries, deaths, or long-term health consequences.