The data centers that train all the large language models behind AI consume unimaginable amounts of energy, and the stakes are high for big tech companies to ensure they have enough power to run those plants. That’s why Microsoft is throwing its weight behind nuclear power.
The tech giant on Friday signed a major deal with nuclear plant owner Constellation Energy to restart its closed Three Mile Island plant by 2028 to power its data centers, The New York Times reported.
The Constellation plant, infamous for melting down in 1979, closed in 2019 after failing to garner enough demand for its energy amid competition with cheaper alternatives like natural gas, and solar and wind power.
The NYT reported that Constellation has said it plans to spend $1.6 billion to revive its reactor, pending regulatory approval.
The financial terms of the deal were not disclosed. Microsoft agreed to purchase all of the power from the reactor over the next 20 years, a Constellation spokesperson told TechCrunch. Once restored, the reactor promises a capacity of 835 megawatts.
The new plant will also be renamed the Crane Clean Energy Center (CCEC) after Constellation’s former CEO, Chris Crane, who died in April. An economic report commissioned by the Pennsylvania Building & Construction Trades Council has found that the plant will create 3,400 direct and indirect jobs, add $16 billion to the state’s GDP, and generate more than $3 billion in state and federal taxes.
“Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise,” said Joe Dominguez, president and CEO of Constellation, in a statement.
Microsoft did not immediately respond to a request for comment.
Microsoft isn’t the only tech company today turning to nuclear energy to power AI data centers. OpenAI’s CEO Sam Altman has called for an energy breakthrough in the form of nuclear power, and Amazon in March bought a nuclear-powered data center in Pennsylvania for $650 million.
Microsoft, Amazon, and Alphabet have all said they plan to run data centers entirely on green energy. Microsoft’s goal is to do so by 2030, but in May, the company admitted its AI push is putting that goal into jeopardy.
In June, Bloomberg reported that big tech’s upcoming data centers promise to consume a combined 508 terawatt hours of electricity per year if they run constantly. That would be more than the total electricity produced in Australia in a year.
The demand for clean electricity to power not just data centers but also electric vehicles, factories and more has spurred a renaissance of sorts around nuclear power. Investors are increasingly bullish on nuclear fusion startups, which have raised $7.1 billion to date, since it represents a cleaner and more powerful future for nuclear power. It uses hydrogen as fuel, whereas nuclear power plants and their fission process rely on hard-to-come-by elements like uranium and plutonium.
