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US Set to Revive First-Ever Nuclear Plant: How Microsoft Aims to Power Its Data Centers

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Constellation Energy Corporation and Microsoft have entered into a significant 20-year power purchase agreement aimed at revitalizing Unit 1 of the Three Mile Island nuclear facility in Pennsylvania, which has been rebranded as the Crane Clean Energy Center (CCEC). This agreement, announced on September 20, 2024, will enable the nuclear plant to generate 835 megawatts of carbon-free electricity, sufficient to supply power to approximately 700,000 homes. This initiative is particularly beneficial for Microsoft’s data centers operating within the PJM energy market, as stated by Constellation.

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The initiative to restart Three Mile Island Unit 1, which had been inactive since its closure in 2019 due to financial difficulties, represents a historic first in the United States for the revival of a decommissioned nuclear facility. The plant was previously recognized for its high safety standards and operational reliability, achieving a capacity factor of 96.3% in its last operational year, as noted by Constellation’s CEO, Joe Dominguez. To bring the facility up to contemporary operational standards, the company plans to invest $1.6 billion in enhancements to the plant’s turbine, generator, and cooling systems.

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This partnership between Microsoft and Constellation signifies a pivotal advancement in Microsoft’s strategy to utilize carbon-free energy sources to mitigate its data center energy consumption. Bobby Hollis, Vice President of Energy at Microsoft, highlighted that this collaboration will not only aid in decreasing the company’s carbon emissions but also contribute to the stability of the power grid by providing dependable energy resources.

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The Crane Clean Energy Center is poised to deliver substantial economic advantages alongside its environmental contributions. A comprehensive economic analysis conducted by The Brattle Group, at the behest of the Pennsylvania Building & Construction Trades Council, indicates that the plant’s reactivation could inject $16 billion into the state’s economy and create approximately 3,400 new jobs. Furthermore, the initiative is anticipated to yield around $3 billion in tax revenue for both state and federal governments.

This facility is named in honor of Chris Crane, the former CEO of Constellation and a proponent of nuclear energy, thereby commemorating his commitment to sustainable and dependable energy sources. The center is projected to resume operations by 2028, contingent upon receiving the necessary regulatory approvals from the Nuclear Regulatory Commission (NRC) as well as state and local authorities. Additionally, Constellation is actively seeking a license renewal to prolong the plant’s operational lifespan until at least 2054.

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There is considerable public backing for the plant’s restart, with a recent poll by Susquehanna Polling & Research revealing that 70% of Pennsylvanians support nuclear energy. The recommissioning of Unit 1 is expected to bolster Pennsylvania’s status as a frontrunner in carbon-free energy production, thereby aiding the state in achieving its clean energy objectives, as emphasized by Governor Josh Shapiro in his endorsement of the initiative.


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