DOE Grants $1 Billion to Revive Three Mile Island Nuclear Facility

Historic Nuclear Plant Set for Revival with Federal Support

The Department of Energy (DOE) has taken a significant step to bolster energy production in the United States by issuing a $1 billion loan to Constellation Energy Generation LLC. Announced on November 18, this funding aims to restart a nuclear generating station in Pennsylvania, previously known as Three Mile Island, located on the Susquehanna River in Londonderry Township. The move is part of a broader effort to meet growing energy demands, particularly for technology-driven sectors.

Constellation Energy plans to transform the facility into the Crane Clean Energy Center, with expectations to power the equivalent of 800,000 homes by 2027. The project not only promises to restore jobs but also to provide a reliable source of power for the Mid-Atlantic region. This initiative has been spurred by a 20-year power purchase agreement with Microsoft, which will utilize the plant's full output of 835 megawatts to support its data centers focused on artificial intelligence.

Energy Security and Economic Benefits Highlighted by Officials

Energy Secretary Chris Wright emphasized the importance of this restart, stating, 'Constellation's restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region.' He further noted that the project will play a crucial role in supporting domestic manufacturing growth and maintaining a competitive edge in technological advancements. The DOE also highlighted that the loan will help lower energy costs for consumers in the region.

The first advance of the loan to Constellation Energy is expected in the first quarter of 2026, according to Greg Beard, senior advisor to the DOE's Loan Programs Office. This financial support underscores the administration's commitment to revitalizing nuclear energy as a cornerstone of energy security and economic development. The project aligns with efforts to ensure that the nation has the necessary resources to meet future challenges.

Strategic Partnership with Tech Giant Fuels Restart

A key driver behind the Three Mile Island restart is the partnership with Microsoft, which has committed to purchasing all the power generated by the reactivated Unit 1 reactor. This agreement, initially announced by Constellation on September 20, 2024, reflects the surging demand for energy from data centers, particularly those supporting artificial intelligence applications. The collaboration marks a significant shift in how energy partnerships are structured to meet modern needs.

The reactivation of this plant, which was the site of the nation's worst commercial nuclear accident in 1979 but has since been deemed safe for restart, represents a turning point for nuclear energy in America. With federal backing under President Donald J. Trump's administration, this initiative showcases a dedication to leveraging existing infrastructure to address contemporary energy challenges while supporting technological innovation and job creation in Pennsylvania.