It may have sounded like one of the stranger headlines of 2024: Microsoft is investing $1.6 billion to revive Three Mile Island. This refers to the Pennsylvania nuclear power plant that experienced a partial meltdown in 1979 involving reactor #2 which resulted in no injuries or fatalities, yet it significantly hindered the nuclear sector for years. Following that incident, only two new facilities have been initiated.
“This is sacred ground in the nuclear sector,” remarked Joe Dominguez, the CEO of Constellation Energy, which operates nearly half of America’s 54 nuclear reactors (including Three Mile Island). “This is a site where we learned and improved.”
He noted that the 1979 incident prompted thousands of modifications to nuclear power protocols and procedures. “Many people forget that there was another reactor at the location,” he said. “This reactor continued operation until 2019, when it was closed for economic factors. The abundance of natural gas, reduced demand, various subsidies in the industry, and lack of supportive nuclear policies led to plant retirements.”
So, what is Microsoft’s motivation?
All major tech companies are striving to combat the climate crisis. This includes Google, Apple, and Microsoft, each of which has committed to achieving net-zero carbon emissions. They’ve been making significant strides; each has funneled billions into wind and solar initiatives.
Then, artificial intelligence emerged. AI data centers demand massive amounts of power, prompting Big Tech to realize they need to control their energy sources to meet emissions targets.
Dominguez stated, “Microsoft will benefit from reliable clean energy for the next 20 years.”
He mentioned that reviving the Three Mile Island facility would be faster and more cost-effective than constructing a brand-new nuclear plant. “It will be at least ten times cheaper than building a new facility,” he emphasized. “We believe we can get it operational in approximately three years, compared to nearly a decade for the last newly built plant.”
But for tech companies that lack access to a near-retired nuclear facility, the solution is to develop new ones. Just weeks after Microsoft’s announcement, Amazon and Google unveiled major nuclear investments.
Google is augmenting its substantial green energy investments with a new type of nuclear technology known as small modular reactors. “These are not the same as the nuclear power plants of the past with their massive cooling towers,” explained Michael Terrell, who leads Google’s decarbonization efforts. “These are significantly smaller facilities, but their modular nature allows them to be aggregated to form larger power plants.”
He anticipates that the first advanced nuclear reactor could be operational by 2030. “And we’re aiming not just for a single reactor, but rather a series of reactors that follow,” Terrell said.
While nuclear power is not without its flaws—it still generates waste that needs secure storage—unlike solar and wind, nuclear power can provide constant energy, which is crucial for AI data centers.
To facilitate this newer generation of reactors, Google is funding Kairos Power. They are working on three small demonstration plants in Oak Ridge, Tennessee, at the site where uranium was first processed for the atomic bomb.
CEO Mike Laufer explained that his reactors utilize fuel pebbles, which are about the size of golf balls—primarily composed of graphite with small uranium kernels. Each pebble has the energy capacity equivalent to four tons of coal.
And what about carbon dioxide emissions compared to coal? “Zero,” Laufer stated.
The Kairos reactors operate at lower power and pressure levels than conventional reactors, which translates to reduced risk.
This all sounds promising! But what’s the potential downside?
“The only major hurdle with small modular reactors is that they don’t yet truly exist,” noted Sharon Squassoni, a professor at George Washington University, who spent 15 years researching nuclear safety for the government. She believes tech companies might be overestimating their capabilities. “They are probably going to discover that the process is significantly more time-consuming and costly than they anticipated,” she suggested. “We’ll really see how committed they are to a clean energy future.”
“So, you’re suggesting they might resort to burning resources for power?” I asked.
“I am quite confident they will,” Squassoni affirmed.
“Do you think there’s a hint of tech-bro overconfidence here?”
“Oh, absolutely!” she laughed.
Kairos’ Mike Laufer acknowledged, “Yes, it’s quite a challenge. I completely agree with anyone who says that. But we are starting on a smaller scale and planning to expand in the future.”
Dominguez and his team are preparing Three Mile Island for Microsoft, rebranding the facility as the Crane Clean Energy Center. If AI is indeed triggering a nuclear renaissance in the U.S., he asserts: full steam ahead.
I inquired, “Why do all new plants take significantly longer and incur higher costs than anticipated?”
“The straightforward answer is, we don’t construct enough of them,” Dominguez explained. “Rather than creating unique designs, we should aim for repetitive, cookie-cutter designs.”
“Is it widely understood among government and industry that utilizing the same design repeatedly could lead to quicker and less expensive outcomes?”
“That’s probably the most well-accepted concept,” Dominguez replied. “It’s acknowledged by both parties, which is a rarity nowadays! Everyone recognizes that if you standardize designs, you can produce more of them efficiently.”
“Do you believe we’ll reach that point?”
“I do.”
Google’s Michael Terrell shares this sentiment, expressing confidence that his company will achieve its zero-carbon target by 2030. “It’s a profoundly ambitious goal: 24/7 carbon-free energy across all our operations worldwide,” he said. “However, we are diligently working towards it and hope to reach that goal.”
For more info:
Story produced by Mark Hudspeth. Editor: Remington Korper.
See also:
