US Nuclear Plant

Microsoft and Constellation Energy’s Plan to Powerup its AI Centres Counter Regulatory Problems

Microsoft and Constellation Energy are on their way to revive the Three Mile Island nuclear plant in Pennsylvania, US for its current AI energy needs.

However, the plant carries a reputation for having a partial meltdown in 1979 but is now set to get a boost of $ 1.6 billion to get it up and running by 2028.

The plant is aimed at generating climate-friendly energy as tech behemoths turn to nuclear plants to fulfil their energy needs. But this project faces significant hurdles before restarting.

The $1.6 billion injection seeks to revive phase 1 of the plant which ran successfully before being shut down five years ago.

Now, Microsoft is looking at a 2028 relaunch. And with the goal of offsetting Microsoft's data centre power consumption in the region.

According to Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, “This is a unique project. Nobody has done this before. There's going to be challenges that pop up.”

Regulatory Hurdles and Supply-Chain Problems

The problem for The Three Mile Island nuclear plant is securing licenses from the US Nuclear Regulatory Commission (NRC). This will prove to be a herculean task as the NRC is already overwhelmed with applications for new reactor designs and decommissioned plants.

"The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical.

Additionally, supply-chain bottlenecks have emerged since Three Mile Island shut down in 2019. Washington's restrictions on enriched uranium following Russia's invasion of Ukraine have further complicated matters.

Technical Challenges of the Plant

Restarting equipment and infrastructure that has been dormant for five years will be tricky, warns Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists.

"Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said.

Despite these challenges, Talabi believes four years is sufficient for Constellation to address technical issues.

Local Issues and Environmental Concerns

Due to the plant's partial breakdown history, the Three Mile Island's Unit 2 reactor is still not fully supported.

Local opponents are likely to raise concerns during the public comment period, potentially prolonging the process.

Constellations must also obtain modified surface, and groundwater permits from the Susquehanna River Basin Commission.

"Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," said Stacey Hanrahan, a spokesperson for the commission.

As data centres' power consumption is expected to double by 2030, accounting for 9% of the country's electricity, tech companies are scrambling to find sustainable energy solutions.

The success of the Three Mile Island project will be closely watched, as it sets a precedent for future collaborations between tech giants and nuclear power providers.