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The U.S. Department of Energy is backing a historic nuclear plant restart, injecting $1 billion into efforts to power America’s artificial intelligence boom with clean energy. The move signals a dramatic shift in how the nation plans to meet surging electricity demands from data centers—and it’s reshaping the nuclear industry’s future.
What Happened
The Department of Energy extended a $1 billion loan through the Energy Dominance Financing Program to help Constellation Energy restart Three Mile Island Unit 1 in Pennsylvania. The reactor, which shut down in 2019 for economic reasons, will be renamed the Crane Clean Energy Center and is scheduled to return to operation by 2028.
This restart builds on a landmark 20-year power purchase agreement between Constellation and Microsoft, announced in September 2024. The deal represents the largest clean energy commitment by a tech giant to date, cementing nuclear power’s role in powering next-generation data centers.
Why It Matters
AI data centers consume staggering amounts of electricity around the clock. Unlike solar and wind, which fluctuate with weather, nuclear plants deliver consistent baseload power 24/7—exactly what tech companies need to train AI models and run inference operations without interruption.
Energy experts warn that if the U.S. pursues clean energy for AI and data centers, the nation will need to triple energy supply by 2030. Nuclear power, with its high energy density and small physical footprint, is uniquely suited to bridge this gap without expanding greenhouse gas emissions.
The Three Mile Island restart is particularly symbolic. The site was infamous for the 1979 partial meltdown of Unit 2, making it a lightning rod for nuclear safety debates. Its revival demonstrates that the industry has moved beyond those historical fears through advanced safety systems and rigorous oversight.
Key Details
Three Mile Island Unit 1 operated safely for decades before its closure. Restarting existing reactors proves faster and more cost-effective than building new plants from scratch—a critical advantage given the urgent timeline for meeting AI energy demand.
The Three Mile Island restart is not isolated. Constellation is seeking license renewals extending operations until 2054. Meanwhile, other utilities are exploring restarts at Duane Arnold in Iowa and Palisades in Michigan, which secured a $1.5 billion loan guarantee from the Department of Energy in 2025.
Amazon, Google, and Meta have also joined forces, pledging support for tripling global nuclear capacity by 2050. These commitments translate into real procurement deals—power purchase agreements, joint-buyer initiatives, and early agreements with advanced reactor developers.
What Comes Next
The federal government is pushing for streamlined regulations and expanded investments in advanced reactor technologies, including small modular reactors (SMRs) that promise faster deployment and lower costs than traditional plants.
These shifts represent a fundamental realignment of U.S. energy policy. As data center electricity demands accelerate, nuclear energy has transitioned from a declining industry to a cornerstone of America’s clean energy and AI leadership strategy.
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