HARRISBURG, Pa. — The U.S. Department of Energy announced on Tuesday that it will provide a $1 billion loan to support the revival of the Three Mile Island nuclear power plant in Pennsylvania. This facility is set to supply energy to data centers for tech giant Microsoft, enhancing the intersection of nuclear energy and technology.
The loan aligns with the priorities of the Trump administration, focused on promoting nuclear energy and the advancements in artificial intelligence. By receiving this federal assistance, Constellation Energy, the owner of the plant’s only operating reactor, will benefit from reduced financing costs as it works to resume operations of the long-dormant facility. The reactor has the capacity to generate 835 megawatts of power, sufficient to supply approximately 800,000 homes, according to the Department of Energy.
Constellation Energy revealed plans last year to invest $1.6 billion in revamping the reactor under a 20-year contract with Microsoft. The plant, which has been inactive for five years, is being renamed the Crane Clean Energy Center as the company undertakes renovations to essential equipment including the turbine, generator, and cooling systems. The goal is to bring the plant back online by 2027.
The federal loan is part of a broader $250 billion energy infrastructure initiative established by Congress in 2022. Details regarding the specific terms of the loan have not been disclosed by either the Department of Energy or Constellation Energy.
Historically, the plant is noted for being the site of the worst commercial nuclear accident in the U.S., which occurred in 1979 and led to the destruction of one reactor unit. The facility has faced operational challenges in the past, including its shutdown in 2019 when Exelon, its then-parent company, decided to take the reactor offline due to financial losses and the absence of subsidy support from Pennsylvania lawmakers.
The decision to restart the reactor coincides with a growing recognition of nuclear power as a vital component in the country’s energy strategy, aiding in the transition towards cleaner energy solutions, meeting rising power demands, and combatting climate change.