Big Tech's AI Ambitions Face Nuclear Power Hurdles

US nuclear plants won't power up Big Tech's AI ambitions right away

NEW YORK/WASHINGTON - A plan by Microsoft to use the restart of a Three Mile Island nuclear reactor to help power its expanding data centers reflects the tech industry's hopes nuclear energy can be a quick and climate-friendly answer to its massive electricity needs. But it will be tough to swiftly meet soaring power demand from the data centers behind artificial intelligence with new or resurrected nuclear reactors, as companies will face high regulatory hurdles, potential fuel supply obstacles, and sometimes stiff local and environmental opposition. Microsoft and Constellation Energy announced a deal to restart a unit at the plant in Pennsylvania on Friday, in what would be the first-ever restart for a data center. At the announcement, Constellation's CEO Joe Dominguez called nuclear power the only energy source available that is both climate-friendly and reliable enough to support Big Tech's needs, implying weather-dependent wind and solar energy may not be up to the task. The announcement follows a similar agreement in March in which Amazon.com purchased a nuclear-powered datacenter from Talen Energy , and other nuclear contracts for data centers are in the works, power industry sources say. The needs these deals aim to fill are huge. U.S. data center power use is expected to roughly triple between 2023 and 2030 and will require about 47 gigawatts of new generation capacity, according to Goldman Sachs estimates, which assumed natural gas, wind and solar would fill the gap. Climate conscious investors and regulators are keen to ensure this spike does not trigger a huge rise in greenhouse gas emissions. For Microsoft and Constellation, at least, the deal is likely to be challenging to bring to fruition. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." The Three Mile Island plant made global headlines in 1979 with a partial meltdown at its Unit 2 reactor, the worst nuclear incident in US history. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. But key permits for the plant's new life have not yet been filed, regulators say. Getting them could be hard, especially against local opponents who remember the 1979 partial meltdown. Resuming the use of equipment and infrastructure that has been dormant for five years could also be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. OTHER HURDLES There are broader issues that could affect any number of other attempted tech-nuclear link ups in the U.S. For instance, Washington slapped restrictions on enriched uranium imports following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission could also be tricky for any nuclear project. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and the restart of another decommissioned reactor. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. For the Talen project, pocketbook issues have become a problem. Even though the plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. T alen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. In general, simply purchasing power from nuclear plants to run data centers just means diverting it away from other consumers, creating competition for supplies on the grid that could potentially drive up power bills. In the meantime, the Three Mile Island project is posing a major test of public appetite for expanded nuclear power. Talabi said four years is likely enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. But he emphasized the importance of handling environmental and community concerns that may arise around the site. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said. (Reporting by Laila Kearney and Timothy Gardner; Editing by David Gregorio and Sonali Paul)

US nuclear plants won't power up Big Tech's AI ambitions right away

NEW YORK/WASHINGTON (Reuters) - Constellation Energy and Microsoft plan to restart the Three Mile Island nuclear plant, hoping they have scored a quick source of enough climate-friendly energy to power rapidly expanding data centers for artificial intelligence (AI). U.S. power generation capacity through the end of the decade could rise by about 2.4% to 2.7%, according to an analysis of the most recent available U.S. Energy Information Administration (EIA) data, from late 2022. Data center power use is expected to more than double by 2030 to consume about 9% of all the country's electricity. Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs. In March, 1979, Three Mile Island made global headlines with a partial meltdown at its Unit 2 reactor. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. It is the latest deal between a technology company and a nuclear-power provider. In March, Talen Energy agreed to sell a data center to Amazon.com next to Talen's nuclear plant, which operates elsewhere in Pennsylvania. More nuclear contracts for data centers are in the works, power industry sources say. But each tech-nuclear deal is unique and comes with its own challenges. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." Supply-chain bottlenecks have cropped up since Three Mile Island shut its Unit 1 in 2019, Fowler said. For instance, Washington slapped restrictions on enriched uranium following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission will also be challenging, as will negotiating with local opponents, who remember the 1979 partial meltdown. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and another decommissioned reactor in Michigan. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. While Constellation seeks NRC operating approvals for Three Mile Island, the public comment period could prolong the processes. It could also take years to reconnect the project to the regional grid. OTHER HURDLES Regulators may follow lengthier review processes to restart a fully shut nuclear plant, risk and energy experts said. Even though the Talen plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. Talen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. At Three Mile Island, resuming the use of equipment and infrastructure that has been dormant for five years could be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. Talabi said four years is enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. Talabi also emphasized the importance of handling environmental and community concerns that may arise around the site, particularly given the 1979 accident. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said. (Reporting by Laila Kearney and Timothy Gardner; Editing by David Gregorio)

U.S. nuclear plants won't power up Big Tech's AI ambitions right away

A plan by Microsoft to use the restart of a Three Mile Island nuclear reactor to help power its expanding data centers reflects the tech industry's hopes nuclear energy can be a quick and climate-friendly answer to its massive electricity needs. But it will be tough to swiftly meet soaring power demand from the data centers behind artificial intelligence with new or resurrected nuclear reactors, as companies will face high regulatory hurdles, potential fuel supply obstacles, and sometimes stiff local and environmental opposition. Microsoft and Constellation Energy announced a deal to restart a unit at the plant in Pennsylvania on Friday, in what would be the first-ever restart for a data center. At the announcement, Constellation's CEO Joe Dominguez called nuclear power the only energy source available that is both climate-friendly and reliable enough to support Big Tech's needs, implying weather-dependent wind and solar energy may not be up to the task. The announcement follows a similar agreement in March in which Amazon.com purchased a nuclear-powered datacenter from Talen Energy , and other nuclear contracts for data centers are in the works, power industry sources say. The needs these deals aim to fill are huge. U.S. data center power use is expected to roughly triple between 2023 and 2030 and will require about 47 gigawatts of new generation capacity, according to Goldman Sachs estimates, which assumed natural gas, wind and solar would fill the gap. Climate conscious investors and regulators are keen to ensure this spike does not trigger a huge rise in greenhouse gas emissions. For Microsoft and Constellation, at least, the deal is likely to be challenging to bring to fruition. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." The Three Mile Island plant made global headlines in 1979 with a partial meltdown at its Unit 2 reactor, the worst nuclear incident in US history. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. Microsoft and BlackRock to launch $30 billion fund for AI infrastructure But key permits for the plant's new life have not yet been filed, regulators say. Getting them could be hard, especially against local opponents who remember the 1979 partial meltdown. Resuming the use of equipment and infrastructure that has been dormant for five years could also be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. OTHER HURDLES There are broader issues that could affect any number of other attempted tech-nuclear link ups in the U.S. For instance, Washington slapped restrictions on enriched uranium imports following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission could also be tricky for any nuclear project. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and the restart of another decommissioned reactor. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. For the Talen project, pocketbook issues have become a problem. Even though the plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. Talen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. In general, simply purchasing power from nuclear plants to run data centers just means diverting it away from other consumers, creating competition for supplies on the grid that could potentially drive up power bills. In the meantime, the Three Mile Island project is posing a major test of public appetite for expanded nuclear power. Talabi said four years is likely enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. But he emphasized the importance of handling environmental and community concerns that may arise around the site. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said. Published - September 25, 2024 09:58 am IST Read Comments

US nuclear plants won't power up Big Tech's AI ambitions right away

Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs.Constellation Energy and Microsoft plan to restart the Three Mile Island nuclear plant, hoping they have scored a quick source of enough climate-friendly energy to power rapidly expanding data centers for artificial intelligence (AI). U.S. power generation capacity through the end of the decade could rise by about 2.4% to 2.7%, according to an analysis of the most recent available U.S. Energy Information Administration (EIA) data, from late 2022. Data center power use is expected to more than double by 2030 to consume about 9% of all the country's electricity. Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs. In March, 1979, Three Mile Island made global headlines with a partial meltdown at its Unit 2 reactor. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. It is the latest deal between a technology company and a nuclear-power provider. In March, Talen Energy agreed to sell a data center to Amazon.com next to Talen's nuclear plant, which operates elsewhere in Pennsylvania. More nuclear contracts for data centers are in the works, power industry sources say. But each tech-nuclear deal is unique and comes with its own challenges. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." Supply-chain bottlenecks have cropped up since Three Mile Island shut its Unit 1 in 2019, Fowler said. For instance, Washington slapped restrictions on enriched uranium following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission will also be challenging, as will negotiating with local opponents, who remember the 1979 partial meltdown. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and another decommissioned reactor in Michigan. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. While Constellation seeks NRC operating approvals for Three Mile Island, the public comment period could prolong the processes. It could also take years to reconnect the project to the regional grid. OTHER HURDLES Regulators may follow lengthier review processes to restart a fully shut nuclear plant, risk and energy experts said. Even though the Talen plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. Talen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. At Three Mile Island, resuming the use of equipment and infrastructure that has been dormant for five years could be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. Talabi said four years is enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. Talabi also emphasized the importance of handling environmental and community concerns that may arise around the site, particularly given the 1979 accident. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said.

Analysis-US Nuclear Plants Won't Power up Big Tech's AI Ambitions Right Away

NEW YORK/WASHINGTON (Reuters) - Constellation Energy and Microsoft plan to restart the Three Mile Island nuclear plant, hoping they have scored a quick source of enough climate-friendly energy to power rapidly expanding data centers for artificial intelligence (AI). U.S. power generation capacity through the end of the decade could rise by about 2.4% to 2.7%, according to an analysis of the most recent available U.S. Energy Information Administration (EIA) data, from late 2022. Data center power use is expected to more than double by 2030 to consume about 9% of all the country's electricity. Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs. In March, 1979, Three Mile Island made global headlines with a partial meltdown at its Unit 2 reactor. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. It is the latest deal between a technology company and a nuclear-power provider. In March, Talen Energy agreed to sell a data center to Amazon.com next to Talen's nuclear plant, which operates elsewhere in Pennsylvania. More nuclear contracts for data centers are in the works, power industry sources say. But each tech-nuclear deal is unique and comes with its own challenges. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." Supply-chain bottlenecks have cropped up since Three Mile Island shut its Unit 1 in 2019, Fowler said. For instance, Washington slapped restrictions on enriched uranium following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission will also be challenging, as will negotiating with local opponents, who remember the 1979 partial meltdown. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and another decommissioned reactor in Michigan. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. While Constellation seeks NRC operating approvals for Three Mile Island, the public comment period could prolong the processes. It could also take years to reconnect the project to the regional grid. OTHER HURDLES Regulators may follow lengthier review processes to restart a fully shut nuclear plant, risk and energy experts said. Even though the Talen plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. Talen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. At Three Mile Island, resuming the use of equipment and infrastructure that has been dormant for five years could be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. Talabi said four years is enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. Talabi also emphasized the importance of handling environmental and community concerns that may arise around the site, particularly given the 1979 accident. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said. (Reporting by Laila Kearney and Timothy Gardner; Editing by David Gregorio)

Analysis-US nuclear plants won't power up Big Tech's AI ambitions right away

Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs. In March, 1979, Three Mile Island made global headlines with a partial meltdown at its Unit 2 reactor. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. It is the latest deal between a technology company and a nuclear-power provider. In March, Talen Energy agreed to sell a data center to Amazon.com next to Talen's nuclear plant, which operates elsewhere in Pennsylvania. More nuclear contracts for data centers are in the works, power industry sources say. But each tech-nuclear deal is unique and comes with its own challenges. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." Supply-chain bottlenecks have cropped up since Three Mile Island shut its Unit 1 in 2019, Fowler said. For instance, Washington slapped restrictions on enriched uranium following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission will also be challenging, as will negotiating with local opponents, who remember the 1979 partial meltdown. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and another decommissioned reactor in Michigan. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. While Constellation seeks NRC operating approvals for Three Mile Island, the public comment period could prolong the processes. It could also take years to reconnect the project to the regional grid. Regulators may follow lengthier review processes to restart a fully shut nuclear plant, risk and energy experts said. Even though the Talen plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. Talen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. At Three Mile Island, resuming the use of equipment and infrastructure that has been dormant for five years could be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. Talabi said four years is enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. Talabi also emphasized the importance of handling environmental and community concerns that may arise around the site, particularly given the 1979 accident. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said. (Reporting by Laila Kearney and Timothy Gardner; Editing by David Gregorio)

US nuclear plants won't power up Big Tech's AI ambitions right away

NEW YORK/WASHINGTON Sept 24 (Reuters) - Constellation Energy (CEG.O), opens new tab and Microsoft (MSFT.O), opens new tab plan to restart the Three Mile Island nuclear plant, hoping they have scored a quick source of enough climate-friendly energy to power rapidly expanding data centers for artificial intelligence (AI). U.S. power generation capacity through the end of the decade could rise by about 2.4% to 2.7%, according to an analysis of the most recent available U.S. Energy Information Administration (EIA) data, from late 2022. Data center power use is expected to more than double by 2030 to consume about 9% of all the country's electricity. Advertisement · Scroll to continue Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs. In March, 1979, Three Mile Island made global headlines with a partial meltdown at its Unit 2 reactor. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago. Advertisement · Scroll to continue The $1.6-billion plan would restart Unit 1 by 2028 to offset Microsoft's data-center power consumption in the region. It is the latest deal between a technology company and a nuclear-power provider. In March, Talen Energy (TLN.O), opens new tab agreed to sell a data center to Amazon.com (AMZN.O), opens new tab next to Talen's nuclear plant, which operates elsewhere in Pennsylvania. More nuclear contracts for data centers are in the works, power industry sources say. But each tech-nuclear deal is unique and comes with its own challenges. "Nobody has done this before," said Kate Fowler, global nuclear energy leader for Marsh, an energy insurance broker and risk advisor, about Three Mile Island's attempted restart. "There's going to be challenges that pop up." Supply-chain bottlenecks have cropped up since Three Mile Island shut its Unit 1 in 2019, Fowler said. For instance, Washington slapped restrictions on enriched uranium following Russia's 2022 full-scale invasion of Ukraine. Securing licenses from the U.S. Nuclear Regulatory Commission will also be challenging, as will negotiating with local opponents, who remember the 1979 partial meltdown. "The NRC currently really has a full plate," said Sola Talabi, a nuclear engineer and president of energy risk consultancy Pittsburgh Technical, noting license applications for different types of reactors the agency has never considered before, including high-tech modular plants and another decommissioned reactor in Michigan. Even though President Joe Biden recently signed legislation to streamline the NRC's licensing process, consideration of the queue of new projects by the timelines laid out by companies will challenge NRC personnel and technical resources, Talabi said. While Constellation seeks NRC operating approvals for Three Mile Island, the public comment period could prolong the processes. It could also take years to reconnect the project to the regional grid. OTHER HURDLES Regulators may follow lengthier review processes to restart a fully shut nuclear plant, risk and energy experts said. Even though the Talen plant is operating, Amazon's data center there faces challenges on the federal level from two regulated utilities who predict it could increase transmission costs that would raise power bills. Talen disputes the prediction that the public would face higher power bills or reliability problems from the data center, which could consume enough electricity to power all the homes in New Mexico. At Three Mile Island, resuming the use of equipment and infrastructure that has been dormant for five years could be tricky, said Edwin Lyman, a nuclear safety expert at the Union of Concerned Scientists. "Constellation should expect to encounter problems that will be costly and time-consuming to fix," Lyman said. Three Mile Island also will require modified surface and groundwater permits, said Stacey Hanrahan, a spokesperson for the Susquehanna River Basin Commission. "Any modification request will be thoroughly reviewed, and the project's expected water demands will be evaluated for sustainability and potential adverse impacts to the environment and other users," Hanrahan said. Talabi said four years is enough for Constellation to address any technical issues at Three Mile Island, which could be substantial when sensitive components such as steam generators and reactor vessels have been closed for years. Talabi also emphasized the importance of handling environmental and community concerns that may arise around the site, particularly given the 1979 accident. "Probably more than anywhere else in the country, the need for community engagement to ensure that we have societal acceptance is going to be critical for restart," Talabi said. Reporting by Laila Kearney and Timothy Gardner; Editing by David Gregorio Our Standards: The Thomson Reuters Trust Principles., opens new tab Timothy Gardner Thomson Reuters Timothy reports on energy and environment policy and is based in Washington, D.C. His coverage ranges from the latest in nuclear power, to environment regulations, to U.S. sanctions and geopolitics. He has been a member of three teams in the past two years that have won Reuters best journalism of the year awards. As a cyclist he is happiest outside.

U.S. nuclear plants won't power Big Tech's AI ambitions right away. Here's why

Constellation Energy and Microsoft plan to restart the Three Mile Island nuclear plant, hoping they have scored a quick source of enough climate-friendly energy to power rapidly expanding data centers for artificial intelligence (AI). U.S. power generation capacity through the end of the decade could rise by about 2.4% to 2.7%, according to an analysis of the most recent available U.S. Energy Information Administration (EIA) data, from late 2022. Data center power use is expected to more than double by 2030 to consume about 9% of all the country's electricity. Tech companies are scrambling to meet a surge in energy demand from data centers to power generative AI. But tapping the nuclear system involves regulatory hurdles, possible supply-chain snags, sometimes stiff local opposition and scrutiny from water authorities concerned about healthy reservoirs. In March, 1979, Three Mile Island made global headlines with a partial meltdown at its Unit 2 reactor. The reopening plan covers the Unit 1 reactor at the Pennsylvania plant, which operated safely for decades before being closed five years ago.

The AI Boom Is Raising Hopes of a Nuclear Comeback

Microsoft's deal to bring back a Three Mile Island nuclear reactor is just one part of Big Tech's quid pro quo with nuclear power. For five years, reactor one at Three Mile Island nuclear power station in Pennsylvania has lain dormant. Now, thanks to a deal with Microsoft, the reactor will start running again in 2028 -- this time to exclusively supply the tech firm with oodles of low-carbon electricity. It's all part of an ongoing flirtation between Big Tech and nuclear power. In March, Amazon Web Services agreed to buy a data center powered by Susquehanna nuclear power station in Pennsylvania. At an event at Carnegie Mellon University on September 18, Alphabet CEO Sundar Pichai mentioned small modular nuclear reactors as one potential source of energy for data centers. The links don't stop there either: OpenAI CEO Sam Altman chairs the boards of nuclear startups Oklo and Helion Energy. The AI boom has left technology companies scrambling for low-carbon sources of energy to power their data centers. The International Energy Agency estimates that electricity demand from AI, data centers, and crypto could more than double by 2026. Even its lowball estimates say that the added demand will be equivalent to all the electricity used in Sweden or -- in the high-usage case -- Germany. This surge in energy demand is music to the ears of the nuclear power industry. Electricity demand in the US has been fairly flat for decades, but the sheer scale and intensity of the AI boom is changing that dynamic. One December 2023 report from a power industry consultancy declared the era of flat power demand over, thanks to growing demand from data centers and industrial facilities. The report forecasts that peak electricity demand in the US will grow by 38 gigawatts by 2028, roughly equivalent to 46 times the output of reactor one at Three Mile Island. "[AI] is really taking off, and it's garnering a lot of attention in the energy industry," says John Kotek, senior vice president for policy development and public affairs at nuclear industry trade association the Nuclear Energy Institute. Kotek says there's also a national security angle. "People legitimately see AI as a field of competition between the US and our global competitors." The US falling behind in the AI race because it doesn't have enough power "is something that's really causing people to focus attention," he says. Nuclear power is attractive to tech companies because it provides low-carbon electricity round-the-clock, unlike solar and wind, which run intermittently unless coupled with a form of energy storage. Reactivating reactor one will provide Microsoft with 835 megawatts of low-carbon energy over the 20 years that the deal will run for. Since Microsoft has pledged to be carbon negative by 2030, spiraling electricity demand from AI poses a major threat to the firm's climate plans unless it can find sources of low-carbon power. In 2023, Microsoft's emissions increased by 29 percent compared with 2020, primarily driven by the construction of new data centers. Three Mile Island nuclear power station has two reactors. The second reactor was infamously the site of a partial meltdown in 1979 and it has remained out of action ever since. But reactor one kept on chugging away without incident until 2019, when it was taken offline for financial reasons -- mainly due to competition from gas- and wind-powered electricity. Kotek says there are relatively few idle reactors that could also be brought back online fairly quickly, but that a lot of power plant owners are interested in extending their operating licenses of their existing plants to try and ride the AI power wave.

How Big Tech embraced nuclear power | TechCrunch

Microsoft made waves last week when it announced a deal with Constellation Energy to restart a nuclear reactor at Three Mile Island to meet its surging data center power needs, bucking the power source's seemingly terminal decline. In the last decade, seven nuclear reactors have been decommissioned in the U.S., while only two new ones have been switched on. Meanwhile, the number of data centers has exploded, with over 10,000 worldwide, half of which are in the U.S. And as cloud computing grows, EPRI, an electric industry research organization, anticipates that the sector's energy demand will grow by anywhere from 29% to 166% by 2030. Today, data centers consume about 4% of U.S. electricity. By the end of the decade, they might use 9%, all while overall demand grows. Hyperscale data centers, like what Microsoft, Google, and Amazon operate -- and which startups like OpenAI and Anthropic rely on -- are the primary culprit, responsible for 60 to 70% of all data center energy use, according to EPRI. For companies like Microsoft, which has ambitions to eliminate its carbon emissions by 2030, growth in cloud computing and AI pose a particular challenge: The firm's carbon emissions have ballooned some 40% over the last four years, largely a result of expanding data center operations. Google's carbon emissions have grown, too, some 48% in the last five years. (Amazon says all of its data centers' energy use is matched by an equivalent amount of renewable power.) All of that has companies eyeing nuclear as a way to reconcile their breakneck data center growth with their commitments to hit net zero. In that context, it's easy to see why nuclear is appealing: Fission reactors can run uninterrupted for years, working at maximum capacity over 90% of the time. Maintenance outages tend to be planned months or years in advance, giving data centers plenty of time to prepare. No wonder Microsoft signed a 20-year agreement with Constellation. Outside of the new deal, Microsoft also has been investing, participating in a Series A for Last Energy, which is planning to build small modular reactors. Not far from Three Mile Island, Amazon recently bought a hyperscale data center that's directly connected to a nuclear plant, and it's hiring a nuclear engineer to help AWS develop and acquire nuclear power. Investors connected to Big Tech have placed their bets, too. Bill Gates co-founded TerraPower, and he has personally invested over $1 billion in the company; former Microsoft CTO Nathan Myhrvold, through Intellectual Ventures, is also on the cap table. Sam Altman backed the small modular reactor startup Oklo before it merged with a special-purpose acquisition company. But Microsoft's deal with Constellation suggests that the company is hedging its bets. The rapid company's data center growth may have forced it to secure power more quickly than it had anticipated. It's also possible that the company realized the current wave of nuclear startups won't be generating electricity anytime soon. The latter isn't surprising. Nuclear reactors aren't exactly simple, and many startups are still relatively young, having produced only plans or concepts of plans. But even more mature startups have stumbled. Two years ago, the Nuclear Regulatory Commission denied Oklo's application to build a reactor for the Department of Energy in Idaho, and last year the Air Force rescinded a $100 million cost-plus contract. Competitor NuScale Power, another fission startup that went SPAC, lost a big contract in 2023. Even if nuclear fission startups are able to overcome their engineering and regulatory hurdles, they'll still have to find somewhere to build them. That remains the biggest challenge, I'd argue. It's no secret that nuclear has an image problem. How many of you cringed a bit when Microsoft announced it was reopening Three Mile Island, even if the reactor in question was operational as recently as 2019? And while the majority of Americans now support nuclear power, the technology lags in acceptance to wind and solar. Plus, that support may vanish once concrete plans emerge. People might like nuclear in the abstract, but what about in their backyards? Meanwhile, the cost of renewable power has grown increasingly attractive, even when adding the cost of batteries to enable 24/7 operation. In the near term, restarting old nuclear power plants will help tech companies keep up with growing power demand while minimizing its climate impact. But there are only so many mothballed nuclear power plants waiting for a savior. Eventually, cloud computing and AI companies will need alternative sources. The time to start looking for them is now.

Will It Take Nuclear Power to Sustain AI? Microsoft Is Betting on It.

Three Mile Island, the three-mile nuclear station near Harrisburg, Pennsylvania, has been closed since 2019. Now the island is set to reopen by 2028 to power Microsoft's data centers, which are foundational to the tech giant's AI and cloud computing businesses. Constellation Energy, the owner of the power unit, announced the 20-year deal on Friday, which involves Microsoft buying energy from the restored plant. Restarting the plant means a $1.6 billion investment to revive it, ensure everything is up to date, and obtain the necessary permits and licenses. The payoff is significant though -- the plant could create 3,400 new jobs directly and indirectly, and add $16 billion to Pennsylvania's GDP. Microsoft's decision to turn to nuclear power is a sign of the high amounts of power required for the AI boom. According to Bloomberg, AI has increased demand for carbon-free electricity -- and Microsoft's move to purchase nuclear energy for 20 years, the first agreement the tech giant has signed of its kind, is the latest move to meet that need. Since the agreement was announced, opinions have been mixed about how to proceed. Pennsylvania Governor Josh Shapiro supports the deal and wants it "fast-tracked." Residents of Perry County, Pennsylvania, however, are writing letters to the newspaper noting that the problem of nuclear waste or by-products should be addressed before the plant opens. Related: How Much Does It Cost to Develop and Train AI? Too Much. Dr. Michael Goff, acting assistant secretary of the Department of Energy's Office of Nuclear Energy, stated that the restart was "an important milestone." "Always-on, carbon-free nuclear energy plays an important role in the fight against climate change and meeting the country's growing energy demands," Goff said. Three Mile Island was once known as the site of the most serious accident in U.S. commercial operating history. In March 1979, part of the power plant melted down and released small amounts of radioactivity. The incident inspired greater regulations and led to less public confidence in nuclear power in the following decades, though there were no injuries, deaths, or long-term health effects observed from the accident.

Microsoft is going to reopen the most infamous nuclear plant in U.S. history because its AI needs it - Softonic

Microsoft is going to reopen the Three Mile Island nuclear plant, which suffered a partial meltdown of the nuclear reactor on March 28, 1979 One of the biggest trends in the field of computing is the expansion of data centers by large companies, whose Internet services are an indispensable part of our commercial and personal lives. These servers and databases require energy, something that is currently in short supply. And the explosion of AI has worsened the problem, with estimates that the global consumption of data centers in the United States will reach 35 GW by 2030: almost double what it was in 2022. It may not seem like much considering that the United States alone consumes 4,000 TW of electricity per year, but a large part of energy and environmental planning is based on estimated energy consumption, and the expansion of data centers throws the prediction figures directly into the trash. To maintain a reliable energy base for these centers, the largest tech companies are turning to nuclear energy to provide them with electricity with near-zero carbon emissions. American companies, such as Amazon, are locating new data centers next to nuclear power plants to take advantage of the uninterrupted and reliable energy that nuclear power offers. On the other hand, Microsoft has reached a 20-year agreement with Constellation to extract energy from what was the Three Mile Island nuclear power plant, located on the Susquehanna River, in Londonderry Township, near Harrisburg (Pennsylvania), and which is now the Crane Clean Energy Center (CCEC). On March 28, 1979, the Three Mile Unit 2 reactor experienced a core meltdown due to a strange combination of mechanical failure and human error that caused severe damage to the reactor and the release of radioactive water and iodine due to a failure in the pressurized water cooling system. Although there were no victims and long-term studies could never confirm a causal increase in cancer cases in the area, Three Mile Island was the worst commercial nuclear accident in the U.S. and arguably the third worst in the world after the subsequent incidents at Chernobyl and Fukushima. However, the impact of the disaster was swift. It brought the issue of reactor safety to the forefront and became the focus of environmentalists and anti-nuclear lobbying groups. The result was the near-total paralysis of commercial nuclear energy in the United States and many European countries until very recently. Contrary to popular belief, Three Mile Island was not completely shut down after the accident. The Unit 1 reactor continued to operate until 2019, when it was dismantled for economic reasons. According to the new Microsoft agreement, the restart will be the first of a U.S. reactor after its final shutdown.

Three Mile Island Nuclear Plant Will Power Microsoft AI

The Three Mile Island nuclear power plant in Pennsylvania will be restarted and then used to help power Microsoft's artificial intelligence. Constellation Energy will reopen a reactor then sell all the output to Microsoft. Two of the site's units were permanently closed almost a half-century ago after the worst US nuclear accident. Mandeep Singh of Bloomberg Intelligence is on "Bloomberg Surveillance." (Source: Bloomberg)