Microsoft agreed to buy electricity from the planned restart of Three Mile Island Unit 1 under a 20-year power purchase agreement with Constellation Energy. Microsoft says the carbon-free electricity will help match the power used by its data centers in the PJM region. The long-term buyer also gives Constellation a stronger commercial basis for restoring a reactor that closed because it was no longer profitable.
Why did Microsoft make the deal?
Microsoft’s stated aim is to match electricity consumed by its data centers in the PJM grid region with carbon-free energy. Nuclear generation can provide electricity continuously, which suits data centers that need power around the clock. The arrangement also advances Microsoft’s stated commitment to become carbon negative. Microsoft vice president of Energy Bobby Hollis called the agreement “a major milestone” in efforts to help decarbonize the grid in support of that commitment. Microsoft’s announcement describes the company’s rationale.
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For Constellation, the agreement supplies a committed buyer for the output of a large plant. That long-term demand can help support the investment and planning needed to bring the reactor back into service. Constellation CEO Joe Dominguez presented nuclear power as a dependable, carbon-free source for data centers and other industries; that is the company’s case for the project, not a neutral finding about every energy source.
Will Three Mile Island directly power Microsoft’s data centers?
The public description is a grid-area matching arrangement: Microsoft says it will purchase the plant’s energy to help match data-center consumption in PJM with carbon-free generation. It does not establish that electricity will travel directly from the reactor to a particular Microsoft building, or that generation and consumption will occur at the same time. The U.S. Energy Information Administration explains that a power purchase agreement does not inherently require a generator and data center to be co-located or to produce and consume electricity simultaneously. EIA’s explanation of data centers and electricity provides context on both the arrangement and uncertainty around future data-center demand.
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Microsoft has not publicly named the specific data centers covered by the matching. The Associated Press reported that the companies did not disclose the contract’s price or detailed commercial terms either. The Associated Press report notes those omissions. As a result, the public record does not support claims about a price premium, savings to Microsoft, or which individual facilities benefit.
Which Three Mile Island reactor is restarting?
The proposed restart is Unit 1. It is not Unit 2, the reactor involved in the 1979 accident. Unit 2 is being decommissioned; Unit 1 is a separate reactor that returned to operation in 1985 after the accident at Unit 2 and continued operating until its 2019 retirement. Constellation now plans to restore Unit 1 as the Crane Clean Energy Center. Constellation’s announcement outlines the project and its distinction from the accident-damaged unit.
Why did Unit 1 close?
Constellation said Unit 1 shut down in 2019 for economic reasons: it was no longer profitable under the conditions then facing the plant. A 20-year purchase commitment changes the commercial picture by providing a long-term customer for the plant’s planned output. It does not, by itself, guarantee that the restart will be completed or that the project will meet its schedule.
When is the plant expected to reopen?
Constellation has announced a target of returning Unit 1 to service in 2028. Its plan includes restoring major equipment and systems, including the turbine, generator, main power transformer, and cooling and control systems. The company has described the facility as expected to produce 835 megawatts of carbon-free generation; the Nuclear Regulatory Commission’s 2026 notice describes the proposed plant as having 835 megawatts-electric of baseload capability. These are stated capacity or output figures, not a guarantee of actual generation in every hour.
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The schedule depends on restoration work, regulatory review and approval, and relevant state and local permits. A target date is therefore a plan, not confirmation that the plant has reopened.
Has the NRC approved the restart?
The restart has not already been approved or completed. The NRC’s process addresses restoring the plant’s licensing basis, returning components to a condition that supports safe operation, and making upgrades required for the proposed operating basis. The NRC facility page listed a draft environmental assessment comment period ending July 8, 2026. A 2026 Federal Register notice describes requested exemptions and license amendments that would support resuming operations under the existing renewed operating license, which runs through April 19, 2034. The notice reports NRC staff’s finding of no significant environmental impact for the proposed agency actions; that finding is part of the review, not a declaration that the restart is complete. See the NRC’s Three Mile Island Unit 1 facility page and the 2026 Federal Register notice.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What economic benefits have been projected?
Constellation cited a 2024 economic-impact study by The Brattle Group, commissioned by the Pennsylvania Building & Construction Trades Council. The study projected 3,400 direct and indirect jobs, more than $3 billion in state and federal taxes, and a $16 billion impact on state GDP. These are modeled estimates, not observed results or guarantees of what the restart will deliver. Constellation’s announcement cites the study and its projections.
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