Microsoft Turns to Nuclear Power to Fuel AI Data Centers with Three Mile Island Deal

In a strategic move to support its energy-intensive AI operations, Microsoft has entered a significant partnership with Constellation Energy, securing nuclear power from the Three Mile Island Unit 1 plant. The agreement will provide a reliable, carbon-free energy source to fuel Microsoft’s AI data centers, ensuring long-term power availability as AI demands continue to surge.

Once restored, the reactor—now renamed the Crane Clean Energy Center—will deliver 835 megawatts of power, with Microsoft committed to purchasing the entire output for the next 20 years. This partnership marks a shift toward nuclear energy, addressing the growing need for consistent, clean electricity in tech sectors.

Constellation Energy plans to invest $1.6 billion in reviving Unit 1 by 2028, pending regulatory approval. The plant’s revival is expected to generate 3,400 jobs and contribute $16 billion to Pennsylvania’s economy, according to reports commissioned by the state.

Nuclear power is gaining renewed attention as tech giants like Microsoft, Amazon, and Alphabet look for sustainable ways to meet their ambitious green energy targets while powering data centers. Microsoft’s decision underscores the role nuclear energy could play in driving AI innovation, reducing carbon footprints, and maintaining energy reliability.

With AI data centers consuming vast amounts of electricity, the demand for carbon-free power sources like nuclear is more critical than ever. As companies race to meet their environmental goals, Microsoft’s partnership with Constellation sets a significant precedent in the tech industry’s approach to sustainable energy solutions.