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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Microsoft agreed to buy electricity from the planned restart of Three Mile Island Unit 1 under a 20-year power purchase agreement (PPA) announced in September 2024. The commitment gives Constellation Energy a long-term buyer for the reactor’s output, helping support the economics of bringing a plant retired as unprofitable back into service. Microsoft says it will use the carbon-free electricity to match power consumed by its data centers in the PJM region.
Why did Microsoft make a deal with Three Mile Island?
Microsoft’s stated aim is to match electricity used by its data centers in PJM with carbon-free energy. The company says the agreement supports its commitment to become carbon negative. Bobby Hollis, Microsoft’s vice president of Energy, called it “a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative.” Constellation’s September 2024 announcement says the 20-year agreement is its largest-ever PPA.
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The deal also addresses a business problem for Constellation: Unit 1 stopped operating in 2019 because its then-operator said it was no longer profitable. A committed buyer for a long period can make the expected output more valuable and help underpin the decision to invest in restoring the plant. The contract’s price and other detailed commercial terms were not disclosed, according to the Associated Press, so the public record does not establish the price Microsoft will pay or any premium.
Will Three Mile Island directly power Microsoft’s data centers?
The public description is a grid-area matching arrangement: Microsoft says it will match electricity consumed by its data centers in PJM with carbon-free energy from the renewed plant. It does not establish that electricity will travel directly from the reactor to a particular Microsoft building. Microsoft has not named the specific data centers covered; the Associated Press reported that the company would not identify them.
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That distinction matters because a PPA does not by itself require a generator and data center to be co-located or to produce and consume electricity at precisely the same time. The U.S. Energy Information Administration’s explanation of data-center electricity demand and power arrangements provides context for why contractual matching should not be read as a dedicated physical connection.
Why does nuclear power appeal to a data-center company?
Data centers need substantial electricity around the clock. Nuclear reactors can generate continuously and do not directly emit carbon dioxide while generating electricity, which makes their output relevant to companies seeking steady power alongside lower electricity-related emissions. In Constellation CEO Joe Dominguez’s words, nuclear plants can supply “carbon-free and reliable” energy “every hour of every day”; that is Constellation’s case for nuclear power, not a neutral finding about every aspect of the deal.
The broader scale of future data-center electricity use is not settled. The EIA cautions that demand estimates are uncertain because future construction, utilization, and efficiency improvements remain unknown. The deal therefore secures a long-term source of generation associated with Microsoft’s current stated matching plan, but it does not establish how much electricity the company’s data centers will need in future years.
Which Three Mile Island reactor is restarting?
The PPA concerns Unit 1, not the damaged Unit 2. Unit 2 was involved in the 1979 accident and is being decommissioned. Unit 1 is a separate reactor that returned to operation in 1985 after the accident at Unit 2, then retired in 2019 for economic reasons. Constellation plans to restore and restart Unit 1 as the Crane Clean Energy Center. Constellation’s announcement describes the restart plan and the company’s expected output.
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Constellation set a target of returning Unit 1 to service in 2028. It plans restoration work on major equipment and systems, including the turbine, generator, main power transformer, and cooling and control systems. The date is a company target, not a guarantee: the restart requires Nuclear Regulatory Commission (NRC) approval after safety and environmental review, along with relevant state and local permits.
The NRC’s Crane Clean Energy Center facility page describes work to restore the plant’s licensing basis, return components to a condition that supports safe operation, and make upgrades required by the proposed operational licensing basis. The page listed a draft environmental assessment comment period ending July 8, 2026. A 2026 Federal Register notice describes requested exemptions and license amendments intended to support resuming operations under the existing renewed operating license, which runs through April 19, 2034. The notice reports NRC staff’s finding of no significant environmental impact for its proposed actions. These steps describe an ongoing regulatory process; they do not mean the reactor has restarted or received all approvals needed to do so.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What are the projected economic benefits?
Constellation cited a 2024 economic-impact study by The Brattle Group, commissioned by the Pennsylvania Building & Construction Trades Council, that projected:
- 3,400 direct and indirect jobs;
- more than $3 billion in state and federal taxes; and
- $16 billion in state GDP impact.
These are modeled estimates from the commissioned study, not observed results. Constellation’s announcement cites the projections.
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What remains undisclosed or uncertain?
- Contract economics: Microsoft and Constellation have not publicly released the PPA’s price or other detailed terms.
- Covered facilities: Microsoft has not identified which data centers are included in its PJM matching arrangement.
- Restart timing: 2028 is a target that depends on restoration work and regulatory and other required approvals.
- Demand outlook: Future data-center electricity use remains uncertain, as the EIA notes.
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