The rapid development of artificial intelligence has driven new demands for cloud computing infrastructure operations from tech giants such as Microsoft and Amazon. It is reported that these tech giants invest billions of dollars every year to build energy-intensive data centers. According to the International Energy Agency, the global electricity consumption of data centers, artificial intelligence, and AI will double from 2022 to 2026. OpenAI's CEO has also said that having enough energy to power these data centers in the future will be "a huge bottleneck."
To meet the energy needs of data centers, the tech giants are aggressively investing in renewable energy and clean energy technologies, such as Microsoft's 10.5 gigawatt renewable energy purchase agreement, and Amazon's $650 million in March to harness carbon-free energy from nuclear power plants at its data center in Pennsylvania, which is connected to the sixth-largest nuclear power plant in United States. Still, as the market for clean energy projects intensifies, finding enough energy to power these computing centers remains a challenge. At the same time, AI technology itself is being used to optimize energy use and develop new energy solutions, such as grid performance optimization and advanced battery technology.
In addition, Microsoft recently struck a power deal with Constellation Energy to help restart a unit at the Three Mile Island nuclear power plant in Pennsylvania. This agreement will help Microsoft meet its goal of using carbon-free energy and meet the power needs of its data centers. The Three Mile Island nuclear power plant suffered a partial meltdown in 1979, and regulatory permission to reopen the plant has not yet been filed. For now, the restart plan still needs to be approved by federal, state and local governments, and the United States Nuclear Regulatory Commission (NRC) review process is expected to be completed in 2027.
Pictured: Three Mile Island Nuclear Facility, Pennsylvania. (Source: GeekWire).
"We have invested significant resources to advance this project and add carbon-free power and capacity to the operating grid," Microsoft Energy's vice president wrote in a blog post announcing the nuclear deal. In this context, the company has shown great interest in emerging technologies such as clean energy, nuclear fusion, sustainable biomass and batteries. Last December, Microsoft's leaders released a brief setting out their interest in nuclear fission and fusion.
In a post on social media, Constellation CEO Joseph Dominguez called the arrangement "a win for Pennsylvania's economy, a big step for Microsoft's efforts to help decarbonize the grid, and an important milestone in our clean energy transition." He also noted that the reactor being restarted, TMI Unit 1, "is one of the safest and most reliable generators in the United States."
Under the agreement, Microsoft will buy electricity from the restarted power plant for 20 years. The Three Mile Island power plant will provide 835MW of electricity, enough to power about 700,000 homes. The deal will help restart Unit 1 of the 50-year-old nuclear power plant, which was decommissioned in 2019 for economic reasons. Unit 2, where the meltdown occurred, will not be restarted. Constellation plans to spend about $1.6 billion to restore the plant, which is expected to be operational in 2028.
Microsoft has been aggressively expanding its use of renewable energy and has pledged to convert 100% of all energy consumption from all self-operated data centers, buildings, and campuses worldwide to zero-carbon renewable energy by 2030. This partnership with the Three Mile Island Nuclear Power Plant is a significant step forward for Microsoft in achieving its sustainability goals.
