The prospect of reviving the Three Mile Island nuclear plant to support Big Tech’s burgeoning energy demands is a complex endeavor that could take years to realize.
While companies like Microsoft and Constellation Energy see nuclear energy as a viable, climate-friendly solution for powering data centers, significant regulatory hurdles, local opposition, and potential fuel supply issues pose serious challenges to swift implementation.
On Friday, Microsoft announced a deal with Constellation to restart a unit at the Three Mile Island facility in Pennsylvania, marking a historic attempt to utilize a nuclear reactor for data center operations. Constellation’s CEO, Joe Dominguez, emphasized that nuclear power is uniquely reliable and environmentally friendly compared to alternative energy sources like wind and solar.
However, the challenges associated with resurrecting the Three Mile Island reactor are considerable. The plant, known for the 1979 partial meltdown at its Unit 2 reactor, plans to restart its Unit 1 reactor, which was operational for decades before closing in 2019. The $1.6 billion initiative aims to bring the reactor back online by 2028, but regulatory approvals are still pending, and local communities may resist due to historical safety concerns.
Kate Fowler, global nuclear energy leader at Marsh, noted that this is an unprecedented move, and various challenges are expected throughout the process. Experts like Edwin Lyman from the Union of Concerned Scientists warned that the reactivation of dormant infrastructure may introduce complications that could be both costly and time-consuming.
In addition to the local challenges, broader regulatory issues are complicating the nuclear revival landscape. Following Russia’s invasion of Ukraine, the US government imposed restrictions on enriched uranium imports, creating potential supply chain challenges for nuclear projects. Moreover, the Nuclear Regulatory Commission (NRC) is currently managing a heavy workload, including new applications for various types of reactors, which could delay the permitting process for Three Mile Island.
Despite the obstacles, there is significant interest in nuclear energy among tech giants. Amazon has also engaged in similar agreements, including the purchase of a nuclear-powered data center from Talen Energy, further demonstrating the tech sector’s commitment to securing reliable, carbon-free energy sources as data center power consumption is projected to triple by 2030.
Constellation’s plans for Three Mile Island will be a critical test of public acceptance for nuclear energy expansion in the US Analysts emphasize the need for effective community engagement to address any environmental concerns that may arise.
With electricity consumption in data centers expected to surge significantly, Microsoft has made a 20-year commitment to purchasing nuclear power from Constellation, marking its first dedicated nuclear facility for operations. If successful, the Three Mile Island project could generate enough energy to power around 800,000 homes, underscoring the potential impact of nuclear power on the energy landscape.
The Street and Reuters contributed to this report.
