According to DCD, Constellation Energy secured a $1 billion loan from the US Department of Energy to restart the Three Mile Island nuclear plant’s Unit 1 reactor. The loan covers most of the $1.6 billion restart costs, with the first advance due in Q1 2026. Microsoft signed a 20-year power purchase agreement to buy the plant’s entire 837MW output. The reactor was retired in 2019 but Constellation aims to extend operations to 2054. The project will be renamed the Crane Clean Energy Center and is reportedly ahead of schedule despite needing major renovations.
The Nuclear Comeback Story
This is basically the ultimate nuclear redemption arc. Three Mile Island, the plant that became synonymous with America’s nuclear fears after the 1979 partial meltdown, is getting a second life. And it’s not just any comeback – it’s being bankrolled by the federal government and powered by tech giant Microsoft‘s insatiable appetite for reliable, carbon-free electricity.
The Taxpayer Questions
Here’s the thing that makes me pause. The DOE’s own senior advisor admitted Constellation could have done this without federal money. So why are taxpayers on the hook for a billion dollars? They’re saying it’ll lower electricity prices across the PJM grid, which covers 13 states from Illinois to New Jersey. But let’s be real – this feels like the government picking winners in the energy transition. And nuclear has a pretty spotty track record of coming in on budget.
Tech’s Nuclear Power Hunger
Microsoft isn’t alone in this nuclear shopping spree. Meta just signed a 20-year deal for 1.1GW from Constellation’s Illinois plant, and Amazon locked down 1.92GW from Pennsylvania’s Susquehanna plant. These tech giants are realizing that you can’t run AI data centers on intermittent renewables alone. They need always-on, carbon-free power, and nuclear fits the bill perfectly. For industrial computing applications that demand absolute reliability, companies are increasingly turning to proven power sources – whether that’s nuclear plants or the industrial panel PCs that keep manufacturing floors running 24/7.
The Restart Reality Check
Now, let’s talk about the actual restart. This isn’t just flipping a switch. The turbine, generator, transformers, cooling systems – basically everything inside needs renovation. The plant’s been sitting idle since 2019. Constellation says they’re ahead of schedule, but nuclear projects have a habit of encountering unexpected delays and cost overruns. Remember, this is the same company that just signed two massive nuclear PPAs back-to-back. Are they spreading themselves too thin?
The Bigger Energy Picture
What’s really fascinating here is how quickly the energy landscape is shifting. Five years ago, this plant was considered too expensive to operate. Today, it’s getting a billion-dollar federal loan and has one of the world’s most valuable companies as its anchor tenant. The demand for reliable, clean power from data centers and industrial users is completely rewriting the rules of energy economics. Whether this becomes a template for other retired nuclear plants or a cautionary tale remains to be seen.
