- Joe Moniquez, CEO of Constellation Energy, proposed reopening Three Mile Island’s undamaged reactor to meet the energy needs of AI while addressing grid congestion and the unreliability of wind and solar power.
- In September 2023, Constellation and Microsoft announced a 20-year power-purchase agreement, with Microsoft securing clean energy from Three Mile Island’s restored Unit 1 reactor.
- As AI’s energy needs rise, nuclear power is seen as a key solution for decarbonizing the grid. The revival of Three Mile Island’s reactor signals a shift in the U.S. energy landscape, with nuclear energy playing an important role in meeting the future energy demands of both AI and sustainable power goals.
Last year, Sam Altman, the co-founder of OpenAI, made a bold and eye-opening statement: future data centers powering advanced artificial intelligence (AI) models could require as much electricity as an entire large city. This startling prediction left tech leaders grappling with how to meet the immense energy demands of AI, especially given the global push for cleaner, more sustainable energy sources.
Enter Joe Moniquez, the CEO of Constellation Energy, a major U.S. energy provider responsible for more than a fifth of the country’s nuclear power. Moniquez had a vision that would take on not just the energy needs of AI but also the challenges of America’s energy grid. What if his company could revive the undamaged reactor at the infamous Three Mile Island nuclear facility?
Three Mile Island, located in Pennsylvania, is perhaps most well-known for the 1979 partial meltdown of its Unit 2 reactor, which remains the most severe nuclear accident in U.S. history. However, its neighboring Unit 1 reactor, which was not affected by the accident, has been decommissioned but still stands. Moniquez saw an opportunity to reopen this existing reactor, tapping into a source of 24/7 clean energy that would perfectly align with the growing demands of AI.
This idea quickly gained traction. Tech companies, with their insatiable hunger for computing power, were facing a significant dilemma. AI requires constant access to electricity, and clean energy sources like wind and solar were unreliable due to their intermittency. In addition, many regions in the U.S. face difficulties connecting to the national grid, which is already congested. The revival of a nuclear power plant—especially one capable of delivering continuous, clean energy—seemed like a potential game-changer.
The proposal, however, was not without its obstacles. Constellation’s ambitious plan required months of engineering work, including the restoration of a training simulator that had been scavenged for parts. Furthermore, the project needed approval from local government authorities, including Pennsylvania Governor Josh Shapiro, whose support was crucial for moving forward.
After a tense meeting with Governor Shapiro, where the plan was presented in detail, the governor agreed to back the project. He made it clear that no state subsidies would be provided, which alleviated some of the political risks surrounding the initiative.
In September 2023, after 17 months of planning and negotiations, Constellation and Microsoft announced a groundbreaking partnership. Microsoft had signed a 20-year power-purchase agreement (PPA) with Constellation to secure a reliable, clean energy source for its data centers, powered by Three Mile Island’s rejuvenated Unit 1 reactor. The deal represents a major victory for both parties.
Constellation plans to invest around $1.6 billion in restoring the reactor, which had been in the process of decommissioning. For Constellation, this deal could be a pivotal move to regain relevance in an energy market that had become increasingly skeptical of nuclear power. The company’s investment in nuclear energy could position it as a leader in the growing sector of clean power solutions for tech companies.
Meanwhile, Microsoft’s move to secure a long-term supply of nuclear energy could give it a competitive edge in the tech industry’s race to secure clean power. The company is one of many giants vying for a reliable source of energy that can help meet their sustainability goals and offset the rising carbon emissions associated with powering data centers.
The energy needs of AI are expected to skyrocket in the coming years. Advanced AI models, such as those used in deep learning and large language processing, are projected to require up to five gigawatts of power. To put that into perspective, that is roughly the same amount of electricity consumed by the entirety of Manhattan at any given time. Given that the U.S. grid is already stretched thin, finding locations for data centers of this scale will be a significant challenge.
Three Mile Island’s reactor, which can provide consistent, clean energy, is uniquely positioned to serve the needs of massive AI operations while also helping to meet the increasing demand for decarbonized power. The revival of the plant could be a critical step in reducing the U.S. tech sector’s reliance on fossil fuels and lowering its carbon footprint.
For decades, nuclear power has been a contentious issue in the U.S. Following the disaster at Three Mile Island and the subsequent public outcry, many nuclear plants have struggled to stay operational. The economic viability of nuclear plants has also been challenged, as they could not compete with the lower costs of natural gas or renewable energy. In fact, since the 1990s, 16 U.S. nuclear reactors, totaling more than 11,000 megawatts of power, have been shut down due to economic pressures.
However, a shift in policy and perspective is beginning to take shape. The Biden administration has highlighted nuclear power as a key component of its strategy to decarbonize the U.S. grid by 2035. With the rise of AI and the energy demands it brings, nuclear energy is once again being seen as a viable solution for meeting future power needs while simultaneously reducing carbon emissions.
As AI technology continues to evolve, the energy needs of data centers will only increase. The partnership between Constellation Energy and Microsoft is at a pivotal moment in the race to secure clean, reliable power for the tech sector. If successful, it could pave the way for other companies and governments to explore the revival of old nuclear plants and the expansion of nuclear power as a clean energy source.
In the years to come, AI and nuclear power may not just coexist—they could become inextricably linked in powering the future of technology. The revival of Three Mile Island’s reactor could mark the beginning of a new chapter for both nuclear energy and artificial intelligence, a chapter where clean power and cutting-edge technology go hand in hand.
