The Trump administration has unveiled a major energy initiative, approving a $1 billion federal loan to resurrect the infamous Three Mile Island nuclear power plant in Pennsylvania. The facility, which was the site of the worst nuclear disaster in US history, is now slated to provide electricity for Microsoft's expanding artificial intelligence operations.
A New Chapter for a Historic Site
US Energy Secretary, Chris Wright, confirmed the loan on Tuesday, stating it would be granted to the plant's operator, Constellation Energy. He emphasised that the move would "ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race". This decision marks a dramatic turnaround for the Londonderry Township site, whose reactor unit 2 was permanently shut down following a partial meltdown and radiation leak in 1979.
The revival centres on the plant's 835-megawatt reactor, which was itself deactivated in 2019. This restart is made possible by a 20-year power purchase agreement signed in 2024 between Constellation and Microsoft. The tech giant requires a massive and reliable power source for its energy-intensive AI datacenters, a demand that is driving a broader resurgence of interest in nuclear power within the tech industry.
Powering the AI Boom and the American Grid
The project is a direct response to the United States experiencing a rise in power demand for the first time in two decades, largely fuelled by new technologies like artificial intelligence. Once operational, the restarted reactor is projected to generate enough electricity for approximately 800,000 homes. The US Department of Energy has also highlighted that the initiative will create over 600 jobs, lower electricity costs, and strengthen grid reliability for the Mid-Atlantic region.
Constellation has already begun preparatory work, having hired hundreds of workers, completed infrastructure inspections, and ordered major equipment. The company stated that the project, which includes revamping cooling towers and installing a new main power transformer, is expected to come online in 2027. However, it still requires approval from the US Nuclear Regulatory Commission and relevant water permits.
Balancing Progress with Legacy Concerns
While nuclear energy offers a virtually carbon-free power source coveted by companies like Google and Meta, the restart of Three Mile Island has reignited longstanding debates. Critics continue to point out that the US still lacks a permanent storage solution for radioactive waste. Furthermore, the immense energy demands of the AI sector, with companies like Microsoft, OpenAI, and Amazon investing hundreds of billions in new datacenters, raise broader concerns about climate impact and resource use.
Greg Beard, head of the energy department's loan programs office, sought to reassure the public, noting that Constellation is guaranteeing the loan and that the structure is designed to protect American taxpayers should the project not succeed. The loan is intended to lower financing costs and leverage further private investment to restore a significant source of power to the national grid.
