Constellation Energy (CEG) plans to restart the infamous Three Mile Island nuclear plant in Pennsylvania and sell the power it generates to Microsoft (MSFT) for use in the technology company’s artificial intelligence (A.I.) applications.
In a news release, Constellation Energy said that it expects the Unit 1 reactor at Three Mile Island to come back online in 2028, pending approval from the Nuclear Regulatory Commission.
The reactor Constellation Energy hopes to restart has been shutdown and dormant since 2019. Getting approval to restart it could be a big undertaking.
Three Mile Island is infamous for a partial nuclear meltdown that occurred on the site back in 1979, in what remains the worst nuclear accident in America’s history.
Microsoft reportedly plans to purchase the electricity that Constellation Energy generates from Three Mile Island and use it to power its energy-intensive data centres and A.I. models.
Constellation Energy said the deal it struck with Microsoft is the largest power purchase agreement it has ever signed, although a dollar figure has not been made public.
Constellation Energy’s stock rose 7% in premarket trading on news of its plans to restart a dormant nuclear reactor at Three Mile Island. The company’s share price has risen 80% so far this year to $208.50 U.S.
The stock of Microsoft is up 18% this year and trading at $438.69 U.S. per share.