Constellation and Microsoft Sign Deal to Bring Three Mile Island Back Online

Constellation Energy Corporation and Microsoft have signed a landmark 20-year power purchase agreement to restart Unit 1 of the Three Mile Island nuclear plant in Pennsylvania, now renamed the Crane Clean Energy Center (CCEC). The deal, announced on 20 September 2024, will allow the nuclear facility to produce 835 megawatts of carbon-free energy, enough to power 700,000 homes, providing clean energy for Microsoft’s data centers in the PJM energy market, according to Constellation.

The decision to revive Three Mile Island Unit 1, which was shut down in 2019 due to economic challenges, marks the first restart of a retired nuclear plant in the U.S. The plant had been renowned for its safety and reliability, operating at 96.3% capacity in its final year, according to Constellation CEO Joe Dominguez. The company aims to invest $1.6 billion in upgrading the plant’s turbine, generator, and cooling systems, restoring it to meet modern standards.

The agreement between Microsoft and Constellation is a major step in Microsoft’s commitment to using carbon-free energy to offset its data center consumption. Bobby Hollis, Vice President of Energy at Microsoft, emphasized that this deal would help the company reduce its carbon footprint while supporting the power grid with reliable energy.

In addition to its environmental benefits, the Crane Clean Energy Center will create significant economic opportunities. An economic study by The Brattle Group, commissioned by the Pennsylvania Building & Construction Trades Council, found that restarting the plant will add $16 billion to the state’s economy and generate 3,400 jobs. The project is expected to contribute $3 billion in state and federal taxes.

Named after Chris Crane, a former Constellation CEO and advocate for nuclear energy, the Crane Clean Energy Center honors his legacy of supporting clean, reliable power sources. The facility’s return to operation is expected by 2028, following regulatory approvals from the Nuclear Regulatory Commission (NRC) and state and local agencies. Constellation is also pursuing a license renewal to extend the plant’s operation until at least 2054.

Public support for the restart is strong, with 70% of Pennsylvanians favoring the use of nuclear energy, according to a poll conducted by Susquehanna Polling & Research. The revival of Unit 1 will enhance Pennsylvania’s position as a leader in carbon-free power, helping the state meet its clean energy goals, said Governor Josh Shapiro in support of the project.

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