Microsoft has struck a groundbreaking deal to revive a dormant nuclear reactor at Pennsylvania’s Three Mile Island, set to power its data centers by 2028. This move underscores the increasing reliance of Big Tech on low-carbon energy sources to meet rising electricity demands driven by AI and data centers.
Reactor One at Three Mile Island, which has been inactive for five years, will supply Microsoft with 835 megawatts of clean, round-the-clock electricity for the next 20 years. As Microsoft pushes to become carbon negative by 2030, its AI-fueled energy needs pose a challenge to the company’s climate goals. This nuclear partnership offers a solution, ensuring a steady supply of low-carbon power as energy consumption skyrockets.
Microsoft isn’t the only tech giant turning to nuclear power. In March, Amazon Web Services signed a deal to buy energy from Pennsylvania’s Susquehanna nuclear power station. Alphabet CEO Sundar Pichai has also expressed interest in small modular nuclear reactors as a potential energy source for Google’s data centers. Even OpenAI’s CEO, Sam Altman, is actively involved in the nuclear sector, chairing the boards of startups Oklo and Helion Energy.
The AI boom is fueling Big Tech’s scramble for sustainable energy. According to the International Energy Agency, electricity demand from AI, data centers, and crypto is expected to more than double by 2026. In some cases, this increase could be equivalent to the energy usage of entire countries like Germany. This surge presents a massive opportunity for the nuclear industry, which has faced flat electricity demand in the U.S. for decades. A 2023 report forecasts that peak electricity demand in the U.S. will rise by 38 gigawatts by 2028, largely driven by AI and data center expansions.
John Kotek, senior VP of policy development at the Nuclear Energy Institute, sees the AI boom as a national security issue, noting that energy shortages could hamper the U.S. in the global AI race. Nuclear power’s ability to provide consistent, low-carbon electricity makes it an attractive option for tech companies looking to reduce their carbon footprint while meeting growing power needs. Unlike solar and wind, which are intermittent, nuclear offers reliable energy that doesn’t rely on storage.
The revival of Three Mile Island’s reactor comes after its 2019 shutdown due to financial pressure from cheaper gas and renewable sources. While there aren’t many idle reactors left that can be quickly reactivated, many power plant owners are now seeking to extend the operating licenses of their existing nuclear plants to capitalize on the increasing demand from AI and tech industries.
As Big Tech’s energy needs continue to grow, nuclear power may become a crucial player in the race for clean, scalable electricity.
Read more at Wired.
