If there’s one thing AI is vehemently pushing for — Nvidia’s move aside — it’s a revival of nuclear power. Microsoft’s latest move marks a new milestone in this regard.
Historic agreement. Microsoft has just signed its largest power purchase agreement to date. Under this agreement, energy company Constellation Energy will reopen the Three Mile Island nuclear power plant in Pennsylvania.
Closed since 2019, the plant will add 835 MW of clean electricity to the grid. Microsoft has committed to purchasing its entire output over 20 years to power its artificial intelligence data centers.
Reopening a nuclear power plant for AI. Three Mile Island, famous for its Unit 2 nuclear accident in 1979, continued to operate its Unit 1 for decades until the plant’s closure in 2019.
Constellation Energy will invest $1.6 billion to refurbish and modernize the plant with the goal of restarting it in 2028 for Microsoft. The nuclear power plant will be renamed the Crane Clean Energy Center in honor of the late Chris Crane, CEO of Exelon, Constellation’s former parent company.
A before and after. The energy demand of data centers is growing exponentially with artificial intelligence, whose training and execution consumes more energy than traditional algorithms.
Tech companies have been searching for reliable, carbon-free energy sources to meet their sustainability goals for years, but the rise of generative AI has brought us to a situation where Microsoft has to reopen a nuclear power plant to meet its consumption.
The renewal. Constellation plans a major overhaul of the nuclear power plant, refurbishing turbines, generators, cooling and control systems to assure regulators of safe and efficient operation.
The company expects the reactivation of the plant to generate 3,400 direct and indirect jobs, revitalizing Pennsylvania’s economy with a contribution to GDP of $16 billion.
Why a nuclear power plant? Microsoft has committed to powering its entire infrastructure with 100% carbon-free energy to tackle the climate crisis. This agreement is a shortcut.
AI data centers not only require a lot of power, but also a stable supply. Renewable energy installations, such as solar and wind, fluctuate in the absence of grid-scale storage systems. Nuclear power plants can deliver carbon-free energy 24 hours a day.
Imagen | Constellation Energy
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