Microsoft has signed a 20-year power purchase agreement to bring the Three Mile Island nuclear power plant back online to meet its growing AI energy requirements.
Deal Details
The agreement between Microsoft and Constellation Energy Corp. will grant Microsoft access to 835 megawatts of energy from the Three Mile Island nuclear plant, giving it 100% exclusive rights to the energy produced by the plant. The plant, which was shut down in 2019 for economic reasons, is expected to be operational again by 2028. Once online, the plant will produce enough energy to power more than 800,000 homes.
Impact on the Industry
This deal marks a significant milestone in Microsoft’s efforts to decarbonize the energy grid in alignment with its commitment to becoming carbon-negative. The agreement also highlights the tech industry's push towards alternative energy sources to meet the high energy demands of their data centers. Bobby Hills, Vice President of Energy at Microsoft, stated: 'This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon-negative.'
Shift to Clean Energy
Tech companies, including Microsoft, Google, and OpenAI, are experiencing increased energy consumption driven by AI products and services demand. Since 2019, both Google and Microsoft have reported a rise in carbon emissions. Google’s emissions increased by 50%, while Microsoft’s emissions grew by almost a third since 2020. The Three Mile Island deal is poised to support Microsoft's climate goals by providing clean energy to power its data centers.
The agreement between Microsoft and Constellation Energy Corp. to revive the Three Mile Island nuclear power plant represents a significant step towards clean energy transition and reflects tech giants' commitment to sustainable development amid rising AI energy demands.
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