Is Microsoft Bringing Back A Controversial Nuclear Plant To Power AI Data Centers?

In the last couple of years, businesses have been trying to balance their growing need for artificial intelligence (AI) products with their sustainability efforts.

While they’re looking to reduce their carbon footprint and power consumption, developing and deploying AI tools require massive amounts of energy to keep the lights on.

Industry leaders such as Microsoft face tremendous challenges as the boom in AI has spurred a surge in electricity demands.

However, this is what Microsoft is looking to overcome with its latest partnership with energy company Constellation, which aims to provide a carbon-free alternative. Despite holding a significant place in one of the United States’ darkest moments, the move is garnering massive support.

So, what did the two companies reveal about their new partnership? Let’s explore!

What Is Microsoft’s Nuclear Plan With Constellation About?

Through a news release, Constellation Energy Corporation and Microsoft revealed a new partnership that would see Constellation provide Microsoft with carbon-free energy.
The two companies signed a 20-year power purchase agreement that will include restarting Constellation's Three Mile Island (TMI) nuclear plant’s Unit 1.
While this unit “operated at industry-leading levels of safety and reliability for decades before being shut down for economic reasons” in 2019, the same plant’s Unit 2 was shut down in March 1979 for bringing in a partial nuclear meltdown, which was dubbed one of the most serious radiation leaks in US history.
Such was the severity of the incident, that the plant remains decommissioned even four decades on.
Of course, the two companies don’t plan on bringing back the controversial unit for this project but will look to reignite the adjacent Unit 2 to generate around 835 megawatts of carbon-free energy to the PJM (Pennsylvania-New Jersey-Maryland Interconnection) grid.
The PJM grid covers 13 states and spans Pennsylvania, Delaware, Illinois, Indiana, Kentucky, Michigan, New Jersey, North Carolina, Ohio, Tennessee, Virginia, West Virginia, Maryland and the District of Columbia.
The plant will also be renamed to the Crane Clean Energy Center (CCEC) in honor of Constellation’s former CEO Chris Crane.

How Will This Move Help?

As per a detailed study by the Pennsylvania Building & Construction Trades Council, this first-of-its-kind restart will help generate over 3,400 jobs in Pennsylvania (600 direct jobs at the plant and 2,800 indirect jobs), add $16 billion in state GDP and generate $3.6 billion in tax revenue ($800 million in state tax revenue and $2.8 in federal tax revenue) over the proposed 2-decade period.
CCEC will also help provide enough energy to meet about 6 years of Pennsylvania’s forecasted electricity load growth.
The move comes as Microsoft looks to support vastly growing data centers that power and grow its AI and cloud computing goals. This will help the company match the power its data centers in PJM use with carbon-free energy.

What Are The Key Timelines For This Plan?

While public support and expert opinions are in favor of restarting the plant, including Pennsylvania’s Governor Josh Shapiro, the move still requires US Nuclear Regulatory Commission approval, as well as a comprehensive safety and environmental review.
As such, Constellation is yet to file an application with federal regulators to restart the plant. The company expects the review process to be done by 2027.
Furthermore, it will require permits from relevant state and local agencies in addition to significant investments to restore the plant, including the turbine, generator, main power transformer and cooling and control systems.
Constellation plans to acquire a license allowing the plant to remain in operation till at least 2054, with the expectation to go online in 2028.

TechDogs-"An Image Of The Three Mile Island's Nuclear Reactor"

Source

What Did Constellation And Microsoft Executives Say?

Bobby Hollis, VP of Energy, Microsoft, said, “This agreement is a major milestone in Microsoft's efforts to help decarbonize the grid in support of our commitment to become carbon negative.”
[Contd.] “Microsoft continues to collaborate with energy providers to develop carbon-free energy sources to help meet the grids' capacity and reliability needs.”
Joe Dominguez, President and CEO, Constellation, said, “Powering industries critical to our nation’s global economic and technological competitiveness, including data centers, requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise.”
[Contd.] “Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission to serve as an economic engine for Pennsylvania.”
[Contd.] “We are especially honored to name this new plant after our former CEO Chris Crane, who was a fierce advocate for our business, devoting his entire career to the safe, reliable operation of our nation’s nuclear fleet, and we will continue that legacy at the Crane Clean Energy Center.”

Do you think this move will help solve the growing demand for electricity among AI companies? Do you think it will inspire other companies to invest in this or similar projects?

Let us know in the comments below!

First published on Mon, Sep 23, 2024

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