The Trump administration has unveiled a major energy initiative, approving a $1 billion federal loan to resurrect the infamous Three Mile Island nuclear facility in Pennsylvania.
This landmark decision, announced by US Energy Secretary Chris Wright on Tuesday, will see the plant's operator, Constellation Energy, restart a reactor to supply power specifically for Microsoft's artificial intelligence datacenters.
A New Chapter for a Historic Site
The site, located in Londonderry Township, Pennsylvania, was the scene of the worst nuclear disaster in US history in 1979 when one of its units suffered a meltdown. The unit now being revived, an 835-megawatt reactor, was separately shut down in 2019.
The revival is underpinned by a 20-year power purchase agreement signed between Constellation and Microsoft in 2024. This deal directly responds to the soaring electricity demands of the AI sector, which is driving US power consumption upwards for the first time in two decades.
Secretary Wright stated the loan would "ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race." He further emphasised that the restart would provide "affordable, reliable, and secure energy" across the Mid-Atlantic.
Economic Boost and Environmental Questions
According to the US Department of Energy, the project promises significant benefits:
- Power for the equivalent of approximately 800,000 homes
- Creation of more than 600 jobs
- Lower electricity costs and enhanced grid reliability
Constellation has already hired hundreds of workers, conducted infrastructure inspections, and ordered major equipment. The company anticipates the plant will be back online by 2027, pending necessary permits from the US Nuclear Regulatory Commission.
However, the move has reignited debates. While nuclear energy is a virtually carbon-free source—making it attractive to tech giants like Google and Meta—critics highlight that the US still lacks a permanent storage solution for radioactive waste.
Financing and the AI Power Crunch
Greg Beard from the energy department's loan programs office assured that Constellation is guaranteeing the loan, with a structure designed to protect taxpayers should the project fail.
This initiative comes as tech behemoths, including Microsoft, Google, OpenAI, Amazon, and Meta, invest hundreds of billions in new datacenters. This AI boom raises profound concerns about its impact on the climate crisis, water resources, and consumer electricity bills.
The restart of Three Mile Island, now officially renamed the Crane Clean Energy Center, represents a pivotal moment in America's energy and technological landscape, merging historical legacy with the voracious power needs of the future.
