Photo source: NBC News
The immense energy requirements of data centres that support large language models in artificial intelligence are staggering, which prompted major technology firms to secure reliable power sources. In a significant move, Microsoft has decided to invest in nuclear energy.
On Friday, Microsoft entered into a substantial agreement with Constellation Energy, the operator of the Three Mile Island Unit 1 nuclear facility, to procure electricity for its data centres from this site.
This facility is situated adjacent to TMI-Unit 2, which is notorious for its meltdown in 1979. Unit 1 was taken offline in 2019 due to a decrease in demand for nuclear power as it faced competition from more affordable energy sources such as natural gas, solar, and wind.
Constellation has announced plans to invest $1.6 billion to reactivate Unit 1, contingent upon obtaining regulatory approval, with a target completion date set for 2028.
Microsoft has committed to acquiring all the electricity generated by the reactor over the next two decades. Once operational again, the reactor is expected to have a capacity of 835 megawatts.
The plant will be renamed the Crane Clean Energy Center (CCEC) in honour of Chris Crane, Constellation’s former CEO who passed away in April.
According to an economic analysis commissioned by the Pennsylvania Building & Construction Trades Council, this revitalisation is projected to create 3,400 jobs—both direct and indirect—contribute $16 billion to Pennsylvania’s GDP, and generate over $3 billion in state and federal taxes.
“Powering industries critical to our nation’s global economic and technological competitiveness, including data centres, 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,” stated Joe Dominguez, president and CEO of Constellation.
Microsoft is not alone in its pursuit of nuclear energy for powering AI data centres. Sam Altman, CEO of OpenAI, has advocated for advancements in nuclear energy solutions. Additionally, Amazon made headlines in March by acquiring a nuclear-powered data centre in Pennsylvania for $650 million.
Tech giants like Microsoft, Amazon, and Alphabet have all expressed intentions to operate their data centres entirely on renewable energy. Microsoft aims to achieve this by 2030. However, the company acknowledged in May that its aggressive AI initiatives might hinder this objective.
The increasing demand for clean energy not only for data centres but also for electric vehicles and manufacturing has sparked a resurgence in interest surrounding nuclear power. Investors are showing heightened optimism towards nuclear fusion startups, which have collectively raised $7.1 billion so far.
This emerging technology promises a cleaner and more efficient future for nuclear energy by utilising hydrogen as fuel instead of relying on scarce materials like uranium and plutonium found in traditional fission processes.
