Nuclear Energy and Microsoft’s Data Centers

By Laila Kearney and Timothy Gardner

A plan by Microsoft to utilize the restart of the Three Mile Island nuclear reactor aims to address the tech industry’s growing electricity demands sustainably.

Overview

Microsoft and Constellation Energy’s agreement to restart a unit at the Three Mile Island plant in Pennsylvania marks the first planned nuclear energy source for data centers.

During the announcement, Joe Dominguez, Constellation’s CEO, mentioned nuclear power as the only reliable, climate-friendly energy source suitable for Big Tech, suggesting that renewables like wind and solar may not suffice for the industry’s significant power needs.

This initiative follows Amazon’s recent investment in a nuclear-powered data center and symbolizes a broader trend of tech companies seeking nuclear energy solutions to meet their future power requirements.

Growing Demand

As U.S. data center power usage is expected to triple from 2023 to 2030, estimates predict a need for an additional 47 gigawatts of generation capacity. Investors and regulators are eager to prevent any substantial rise in greenhouse gas emissions tied to this power surge.

However, challenges await Microsoft and Constellation in their endeavor.

Historical Context and Regulatory Challenges

Three Mile Island gained notoriety in 1979 due to a partial meltdown, marking it the worst nuclear incident in U.S. history. The current plan only involves restarting Unit 1, which was operational for decades before its closure five years ago, with a budget of $1.6 billion and completion aimed by 2028.

Acquiring necessary permits poses a significant challenge, especially given local opposition stemming from the plant’s historical incidents. Addressing the non-operational facility’s equipment issues may also lead to further complications.

Broader Industry Hurdles

Wider issues—such as restrictions on enriched uranium imports and the Nuclear Regulatory Commission’s (NRC) backlog—could complicate nuclear projects nationwide. The NRC’s existing workload means they may contest timely approval processes for new reactor types and the restart of decommissioned ones.

Additionally, procurement concerns arise. As data centers secure nuclear power, the allocation of electricity may challenge supply for other consumers, potentially increasing power costs. In this context, the Three Mile Island initiative tests public support for expanded nuclear power use.

Experts highlight the necessity of community engagement to ensure societal acceptance for the project’s success.

Talabi emphasizes the critical nature of addressing environmental and community concerns tied to restarting Three Mile Island while acknowledging that the timeline allows Constellation time to overcome any technical issues.

Conclusion

Ultimately, while the transition to nuclear power for tech giants like Microsoft and Amazon offers a promising solution for their energy requirements, the process is fraught with regulatory, technical, and public opinion challenges.