How Microsoft & Constellation are Enhancing Nuclear Supply
In September 2024, Constellation Energy announced a 20-year power purchase deal with Microsoft to facilitate the reopening of Three Mile Island Unit 1, reinvented as the Crane Clean Energy Centre.
The original site, Three Mile Island Unit 2, is marked by the "most serious accident" in US nuclear history as per the Nuclear Regulatory Commission.
Despite the historical setbacks, the revival of Unit 1 promises to contribute an estimated US$16bn to Pennsylvania's GDP.
“As Microsoft continues its path to become a carbon negative company, this agreement brings a significant supply of new, reliable, carbon-free electricity back to the PJM power grid,” says Bobby Hollis, VP of Energy at Microsoft.
“This will help address the grids’ capacity and reliability needs in the regions we operate.”
Why Microsoft wants nuclear energy
The exponential growth anticipated in AI technologies, projected by the UN Trade and Development Organisation to reach US$4.8tn by 2033, places unprecedented energy demands on tech companies.
Notably, McKinsey reports indicate that nearly 80% of enterprises incorporate AI into their processes, a number that significantly accelerated with Gen AI's adoption increasing from 33% in 2023 to 71% in 2024.
This substantial technological growth underpins the burgeoning energy needs for data centres, integral to AI and cloud computing.
With such demands, even tech giants like Microsoft are experiencing rising emissions.
Despite its commitment to carbon negativity by 2030, Microsoft's emissions saw a 23.4% rise in the fiscal year 2024.
"In 2020, Microsoft leaders referred to our sustainability goals as a 'moonshot', and nearly five years later, we have had to acknowledge that the moon has gotten further away," she wrote in a blog post at the time.
The choice of nuclear power comes from its emissions-free operational nature, a crucial element in managing the power requirements of data centres without exacerbating environmental impact.
While the company also invests in renewables, solar and wind energy lack the reliability for uninterrupted 24/7 operations necessary for data centres.
About the Crane Clean Energy Center
The Crane Clean Energy Center, previously Three Mile Island's Unit 1, intertwines history with future potential.
The infamous partial meltdown in Unit 2, rated Level 5 on the International Nuclear Event Scale (INES), resulted in radioactivity but without reported significant health impacts.
The site's transformation aims to erase past stigmas by harnessing nuclear technology's clean energy promise.
After being decommissioned in 2019 due to financial strains, Unit 1 is poised to become a linchpin for energy innovation, supported by Constellation's assurance of its excellent condition.
Ahead of schedule
The initial projection with Microsoft's power purchase agreement set the reactivation of the Crane Clean Energy Center for 2028.
However, Constellation now anticipates an earlier operational date in 2027, contingent upon approval from PJM’s grid interconnection request.
“My Administration has worked closely with Constellation and PJM on the Crane Clean Energy Center since 2023 in order to get this new generation online as quickly as possible, ensure the reliability of our grid, and cement the Commonwealth’s energy future,” explains Pennsylvania Governor Josh Shapiro.
“This restart will safely take advantage of existing infrastructure while creating thousands of energy jobs and strengthening Pennsylvania’s legacy as a national energy leader.”
“Today we begin a new chapter for reliable, emissions-free nuclear energy, returning thousands of good jobs and billions in economic opportunities for Pennsylvania families and businesses,” adds Joe Dominguez, Constellation’s President and CEO.
“With PJM’s action, Microsoft’s historic investment and strong support from Governor Shapiro, elected officials and members of this community, we’re on track to make history ahead of schedule, helping America achieve energy independence, supercharge economic growth and win the global AI race.”
With staffing surpassing 65% and major technical milestones achieved, including successful operations of key systems like the main generator, the resurgence of the Crane Clean Energy Center exemplifies the potential of nuclear energy within the tech industry's power strategy.
“We congratulate Constellation, Microsoft and the state of Pennsylvania for doing something that seemed impossible just a few years ago: restarting a shuttered nuclear plant,” says Maria Korsnick, President and CEO of the Nuclear Energy Institute.
“The U.S. nuclear industry is uniquely positioned to meet the rising demand for clean, reliable, and affordable energy. The Crane Clean Energy Center is a powerful example of how our industry is rising to the challenge.”
