Microsoft Leverages Nuclear Power to Meet Surging AI Energy Needs
As the demand for artificial intelligence (AI) technologies continues to rise, Microsoft is turning to nuclear power to fuel its ever-expanding data centers. The tech giant has announced a partnership to revive the Three Mile Island nuclear plant, once infamous for its 1979 partial meltdown, as a clean energy source. Today, nuclear power is increasingly recognized for its role in generating low-carbon electricity, and companies like Microsoft, Google, Meta Platforms, and Amazon Web Services are exploring its potential to meet growing energy demands.
AI’s Energy Consumption Is Driving Nuclear Power Demand
According to market intelligence firm International Data Corporation, the electricity consumption of data centers is projected to double between 2023 and 2028, reaching 857 terawatt hours by 2028. This surge in demand has prompted a renewed interest in nuclear power, reversing a decade-long decline in the industry.
Microsoft’s Strategic Partnership with Constellation Energy
Microsoft’s deal with Constellation Energy, the owner of Three Mile Island, involves restarting one of the plant’s dormant reactors, unaffected by the historical meltdown. Constellation is set to invest $1.6 billion in the project, while Microsoft has committed to purchasing electricity from the facility for the next 20 years.
Other Tech Giants Follow Suit
This collaboration is part of a broader initiative by Microsoft to secure long-term, sustainable energy for its operations. The company has already signed agreements with Ontario Power Generation in Canada and Helion, a nuclear fusion startup. Other tech leaders are also investing in nuclear power. In March, Amazon spent $650 million to acquire data centers powered by Pennsylvania’s 2.5-gigawatt Susquehanna nuclear power plant. Additionally, data center operator Equinix is betting on small modular reactors (SMRs), signing a letter of intent with Californian nuclear fusion startup Oklo. These SMRs are designed to produce up to 15 megawatts of power and operate for over a decade without refueling. Oracle, too, has plans to build a data center campus powered by SMRs, though further details are yet to be revealed.
Conclusion
As AI drives greater electricity consumption, nuclear power is becoming a strategic asset for companies seeking reliable, clean energy solutions to meet the demands of their data centers.