Microsoft describes Three Mile Island plant as a once-in-a-lifetime opportunity

Constellation Energy plans to restart Unit 1 of the former Three Mile Island nuclear power plant as the Crane Clean Energy Center. (Photo by Peter Hall/Capital-Star)

In the shadow of Three Mile Island’s iconic cooling towers, state Rep. Tom Mehaffie recalled Wednesday how his father, 50 years earlier, built a career and a life around the nuclear power plant.

“When Constellation left and this plant shut down, a lot was missed,” Mehaffie said, noting the fortunes of businesses and the community followed that of the plant in Dauphin County.

Now, state government and energy and tech industry leaders are betting on its rebirth as an example of Pennsylvania’s readiness to power future industries, including electricity-intensive artificial intelligence data centers.

In a $16 billion deal between owner Constellation Energy and Microsoft to power the tech giant’s AI data centers, Three Mile Island is set to return to service as the Crane Clean Energy Center.

“Let’s not just open this plant, let’s open business,” Mehaffie told a tent full of Constellation Energy workers gathered to celebrate progress in the plant’s restoration, including an expedited review that cuts about a year off the project’s timeline.

About 10 miles south of Harrisburg near Middletown, Three Mile Island was the site of a 1979 nuclear accident that transfixed the world. But after that partial meltdown in one of the plant’s two reactors, the remaining Unit 1 continued safely producing electricity for another 40 years.

In 2019, Constellation determined the facility was no longer economically viable and put plans in motion to permanently decommission the reactor. With peak energy demand, driven largely by data centers, predicted to grow up to 17% by 2035, the plant’s capacity is now in high demand.

“We made a mistake in shutting down this plant, but we’re not here to dwell on that mistake,” Constellation President and CEO Joe Dominguez said, noting that hiring staff for the recommissioning process is ahead of schedule because many former workers returned.

The plant’s reopening will support at least 650 permanent jobs and hundreds more for building-trade workers during the recommissioning process.

Gov. Josh Shapiro welcomed the returning workers Wednesday, as he highlighted the role of nuclear power in his energy plan.

“We’re going to make sure you never have to leave again,” Shapiro said. “This is going to be one of those places where the jobs get passed down from generation to generation, where fathers talk to their daughters about the work that they did, and their daughters pick up that mantle of energy leadership right here at Crane.”

Shapiro has outlined a plan over the last two years to ensure the commonwealth remains a leader in the competitive energy market, by leveraging the state’s natural gas resources while making it an attractive location for sustainable energy technologies. Part of the plan, now under consideration as a suite of bills before the General Assembly, is a goal to obtain 35% of the state’s energy from renewable sources by 2035.

Shapiro noted his administration intervened to ensure the Crane center would be able to quickly reconnect to the regional power grid that serves Pennsylvania and all or parts of 12 other states.

PJM Interconnect, which operates the grid and ensures adequate energy supplies, has a backlog of projects waiting to be approved for connection. The company created its Reliable Resource Initiative last year to expedite the interconnection of 51 shovel-ready generating resources that include battery storage, nuclear and natural gas facilities, a PJM spokesperson said.

Shapiro, who describes himself as an “all of the above energy governor,” noted the state has four operating nuclear power plants that provide nearly one-third of its energy.

“Folks shouldn’t sleep on nuclear,” Shapiro said. “They should be aware of the important clean role it plays in our energy portfolio.”

Bobby Hollis, vice president of energy for Microsoft, said the Crane center is a one-in-a-lifetime opportunity to bring nuclear energy online with the speed needed to match the growth of artificial intelligence.

“It’s a unique opportunity where we can bring together a supportive community, state and a skilled workforce that is absolutely the best kept secret ingredient,” Hollis said.

Microsoft’s agreement to purchase all of the Crane center’s 835 megawatt output demonstrates the importance of abundant energy for tech industry growth, Shapiro said.

“That is a heck of a signal of the optimism people feel about Pennsylvania,” Shapiro said, noting that Amazon also recently announced a $20 billion investment in a data complex near the Susquehanna Steam Electric Station nuclear power plant in Luzerne County.

PJM interconnection president and CEO Manu Asthana said as the state swelters through its first heatwave of the summer, the growth in demand for energy is apparent. PJM this week recorded an all-time peak in electricity production, nine gigawatts larger than last summer’s peak. Asthana said the difference is equal to 11 times the Crane center’s planned output.

“What we’re talking about here is not hypothetical. Our country needs this power. All of our citizens need this power just to keep their lights on, to stay warm, to stay cool,” he said, adding that ensuring power for all that plus AI is a matter of national security.

“I can’t imagine by 2030 what artificial intelligence will enable us to do and strategically, for our country, for our state, for our region, it is critical that we win that race, and the power that you produce here is critical to winning that race.”

This article was first published by the Pennsylvania Capital-Star, part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Tim Lambert for questions: info@penncapital-star.com.