Power-hungry generative AI models are quickly making Big Tech’s massive energy demands even more demanding, forcing companies to source energy from unlikely sources. While Meta and Google explore modern geothermal technologies and other newer experimental energy sources, Microsoft is taking a step back in time. This week, the company signed a 20-year deal to source energy from the storied Three Mile Island nuclear power plant in Pennsylvania, a site once known for the worst reactor accident in U.S. history. If successful, the venture would breathe new life into the iconic symbol of U.S. nuclear power and potentially provide Microsoft with around 800 megawatts of clean-burning power to feed its growing energy appetite.
“This agreement is an important milestone in Microsoft’s efforts to help decarbonize the electric grid, supporting our commitment to net-zero carbon,” said Bobby Hollis, vice president of energy at Microsoft, in a statement.
Three Mile Island, about two hours west of Philadelphia, changed the course of nuclear energy in the United States 45 years ago. On March 28, 1979, a partial meltdown in the plant’s reactor unit 2 occurred before sunrise, releasing radioactive gas into the air and causing panic in the surrounding area. Although no fatalities were reported following the meltdown, the incident left a lasting scar on public perceptions of nuclear energy. Today, many environmental scientists and researchers argue that the reaction may have been overblown. Nuclear power is considered a clean energy source because it produces no greenhouse gas emissions (although it does produce nuclear waste). It is also more reliable than renewables such as solar and wind. This constant availability is attractive to technology companies such as Microsoft, which need plenty of electricity to keep their data centers running and properly cooled.
The comeback
The Three Mile Island nuclear power plant continued to operate for decades after the 1979 incident. It was finally taken offline five years ago, not for safety reasons but because of economic difficulties. Electric utility Constellation has spent the past 20 months inspecting the idle plant to see if it can be made a profitable energy producer again. Constellation believes it can, but at a cost. In a press release, Constellation announced it plans to spend $1.6 billion of its own funds to bring the plant back online. The investment will go toward replacing Unit 1’s main transformer and restoring the turbines and cooling systems. The Washington Post points out that this would be the first time that a U.S. nuclear power plant would come back online after being shut down and the first time that a single customer would purchase all of the plant’s energy production.
Constellation expects the new and improved facility on Three Mile Island could ultimately provide 600 jobs and generate and supply 835 megawatts of electricity to the grid. The New York Times That’s estimated to be enough to power roughly 700,000 homes. Constellation also plans to rename the facility the Crane Clean Energy Center after the company’s late CEO, Chris Crane. The plant could begin operations as early as 2028, subject to regulatory approval from the U.S. Nuclear Regulatory Commission.
“Before its premature closure for economic reasons, this plant was among the safest and most reliable nuclear power plants on the grid. We look forward to bringing it back online under a new name and with a renewed mission to serve as an economic engine for Pennsylvania,” said Joe Dominguez, president and CEO of Constellation, in a statement.
Technology companies need more clean energy for the artificial intelligence of the future
For Microsoft, the deal offers the opportunity to tap into a new energy source to meet its growing power needs. Like some of its competitors, Microsoft has committed to being carbon-negative and zero-emission by 2030. But the race for generative AI supremacy is putting that goal in jeopardy. According to a recent forecast by Goldman Sachs, a ChatGPT query uses about 10 times as much electricity as a Google search. Overall, the energy requirements for new generative AI image and video models like OpenAI’s Sora are “unprecedented,” according to the same report. Some reports suggest that the massive data centers that house these AI models could account for over 9% of the country’s total energy needs by 2030.
Experts previously spoke with Popular Science Doubts about whether existing renewable energy sources like solar and wind can generate enough power fast enough to meet all the new demand. The Goldman Sachs forecast mentioned above suggests that, based on current energy projections, fossil fuels could provide more than half (60%) of the energy needed to meet future data center demand. This dirty energy dilemma has led tech companies to get creative. Both Meta and Google are investing in startups that are looking more closely at geothermal energy. Amazon, which backs Anthropic AI, recently announced an energy deal with Talen Energy to purchase energy from its nuclear plant in Susquehanna, Pennsylvania. Microsoft founder and former CEO Bill Gates has also invested billions in smaller, more experimental nuclear reactors across the country.
AI gives nuclear energy the boost it needs
Microsoft’s turn to nuclear power comes amid an apparent shift in attitudes toward the once-criticized energy source. More than half (57%) of Pennsylvania residents surveyed by a local pollster this year said they would support reopening Three Mile Island. Nationally, 56% of American adults surveyed by the Pew Research Center said they would support nuclear power — up sharply from 43% just four years ago. Last year, California lawmakers abruptly reversed a decision to close the Diablo Canyon power plant. Meanwhile, the federal government and state of Michigan are reportedly spending $2 billion to reopen the Palisades nuclear reactor. The mix of changing perceptions of nuclear power and the tech industry’s sudden need for new energy has put U.S. nuclear power in perhaps one of its most promising positions in recent years.
