Microsoft Signs Deal for Carbon-Free Energy from Restarted Three Mile Island Nuclear Facility

Microsoft and Constellation Energy have entered into a power purchase agreement that will restart the Unit 1 reactor at the Three Mile Island nuclear plant in Pennsylvania, adding 835 MW of carbon-free energy to the 13-state PJM grid. This move aligns with Microsoft’s goal of powering its expanding data centers with carbon-free energy as part of its broader decarbonization strategy.

The 20-year agreement will enable Microsoft to source power from the restarted plant to match the energy consumption of its data centers in the PJM region with clean, carbon-free electricity. The deal comes at a time when Microsoft and other tech companies are grappling with the environmental impact of their rapidly growing data centers, which have seen a significant rise in demand due to the increasing need for AI computing power. Despite setting ambitious goals to become carbon negative by 2030 and to reduce Scope 3 emissions by more than half, Microsoft reported that its Scope 3 emissions in 2023 were over 30% higher than in 2020, primarily due to data center expansion.

Bobby Hollis, Microsoft’s VP of Energy, emphasized that this agreement is a key step in the company’s efforts to decarbonize the grid, helping to meet both capacity and reliability needs with carbon-free energy. Microsoft’s clean energy strategy also includes its “100/100/0” goal, targeting 100% of its electricity consumption, 100% of the time, to be matched by purchases from zero-carbon energy sources by 2030.

For Constellation, this deal represents its largest-ever power purchase agreement. The restart of the Unit 1 reactor, which was shut down in 2019 for economic reasons, will involve significant investments in turbine, generator, and cooling system upgrades. The project, now renamed the Crane Clean Energy Center (CCEC) after former Constellation CEO Chris Crane, is expected to come online in 2028, pending regulatory approvals and safety reviews.

Joe Dominguez, President and CEO of Constellation, underscored the importance of nuclear energy in powering critical industries like data centers with reliable, carbon-free energy. He noted that prior to its closure, the plant had been one of the safest and most reliable nuclear facilities in the U.S., and that its return will serve as a significant economic driver for Pennsylvania.