A nuclear reactor shutdown in 2019 could be reactivated by 2028 now that Microsoft has cut a deal with Constellation Energy Corp. Big tech has been tapping nuclear power to feed the epic-sized power needs for its AI data centers. Microsoft has worked out an agreement with the US’s largest operator of nuclear reactors for exclusive power for 20 years to supply electricity to its data centers in Chicago, Pennsylvania, Ohio, and Virginia.
Per Reuters:
- “Sept 20 (Reuters) – Constellation Energy (CEG.O), opens new tab and Microsoft (MSFT.O), opens new tab have signed a power deal to help resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania in what would be the first-ever restart of its kind, the companies said on Friday.”
- “This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative,” Bobby Hollis, vice president of energy at Microsoft, said in a statement.
Even though Microsoft has cut a deal with Constellation Energy Corp. there are still multiple hurdles to overcome before the reactor shutdown in 2019 can be restarted. The 819 megawatts (MW), per Tom’s Hardware, was shut down due to it, at the time, no longer being economically sustainable. According to Reuters, no regulatory permits have yet to be filed nor has Constellation applied to restart the reactor with the federal nuclear regulators but the NRC is reading to engage with the energy supplier.
- “It’s up to Constellation to lay out its rationale for justifying restart, so we’re prepared to engage with the company on next steps,” said Nuclear Regulatory Commission (NRC) spokesperson Scott Burnell.
The path forward
Constellation will invest $1.6 billion to restart the reactor and although it reportedly hoped to get federal assistance it has since chosen to move forward without assistance to expedite the restart process. Chief Executive Officer Joe Dominguez has indicated he wants to avoid delays in getting government approvals and said that most of the plant is in good working order and aside from upgrading equipment and hiring staff, it could be ready by 2027 if able to connect to the power grid which is operated by PJM Interconnection LLC. The reactivated reactor is expected to produce roughly 834 megawatts of power and Constellation is hoping to get an operating license through 2054.
Per Bloomberg:
- “Policymakers and the market have received a huge wake-up call,” Constellation Chief Executive Officer Joe Dominguez said in an interview. “There’s no version of the future of this country that doesn’t rely on these nuclear assets.”