In a significant move towards a greener future, Constellation Energy Corporation (CEG) has announced a 20-year power purchase agreement with tech giant Microsoft (MSFT). This agreement will see the restart of the Three Mile Island Unit 1 nuclear power plant, which has been dormant for the past five years. The revitalized facility, aptly named the Crane Clean Energy Center (CCEC), is set to become operational by 2028.
The deal signifies Microsoft’s commitment to aligning its data center operations with carbon-free energy sources. The power generated by the CCEC will be used to fuel Microsoft’s PJM data centers, further supporting their sustainability goals. This move underscores the critical role of nuclear energy in achieving a sustainable future, particularly for industries like data centers that require reliable and carbon-free energy sources.
Joe Dominguez, CEO of Constellation Energy, highlighted the importance of nuclear power in powering critical industries, stating that it is the only energy source capable of consistently delivering reliable and carbon-free energy, essential for industries like data centers. He further stressed the significance of nuclear power in ensuring the nation’s global economic and technological competitiveness.
Microsoft’s Vice President of Energy, Bobby Hollis, described the agreement as a major milestone in their efforts to decarbonize the grid, aligning with their commitment to becoming carbon negative. He emphasized Microsoft’s ongoing collaboration with energy providers to develop carbon-free energy sources that cater to the grid’s capacity and reliability needs.
The decision to restart Three Mile Island Unit 1 has received positive responses from various stakeholders. U.S. Congressman Scott Perry expressed his support for the project, highlighting its positive impact on Pennsylvania’s energy security and job creation. He stated that the project will ensure the state has sufficient baseload power to meet its needs for decades to come while creating 3,400 jobs in the local community.
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The announcement has driven up CEG shares by 12.1% to $233.80 in premarket trading. This collaboration between Constellation Energy and Microsoft represents a promising step towards a more sustainable energy future, highlighting the growing importance of carbon-free energy sources in powering our technological world.
