Home ยป Long-term Agreement: Microsoft Signs Purchase Contract with Nuclear Power Plant for Electricity Supply

Long-term Agreement: Microsoft Signs Purchase Contract with Nuclear Power Plant for Electricity Supply

Readers of Blognone are already aware that artificial intelligence requires immense processing power, especially when it comes to data centers, leading to a high demand for electricity. This highlights the fact that large data centers require a significant amount of electricity, so much so that they need to request another nuclear power plant.

Microsoft announced a 20-year agreement to purchase electricity from the power company Constellation, which will not build a new power plant but rather reopen the TMI-Unit 1 nuclear power plant on Three Mile Island. This power plant was shut down in 2019 due to decreased demand for nuclear power, as it was more expensive compared to other energy sources.

Constellation expects to invest around $1.6 billion to refurbish TMI-Unit 1 to start producing electricity by 2028, with a capacity of 835 megawatts, subject to approval from relevant agencies.

TMI-Unit 1 is located adjacent to TMI-Unit 2, where a nuclear meltdown accident occurred in 1979, resulting in the shutdown and cleanup of the reactors by 1993.

Large technology companies are opting to buy electricity from nuclear power plants due to lower carbon emissions compared to other energy sources.

Source: Yahoo! News

TLDR: Microsoft signs a long-term agreement to purchase electricity from Constellation by reopening the TMI-Unit 1 nuclear power plant, investing in refurbishment for electricity production starting in 2028.

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