Mon Sep 23 22:30:49 UTC 2024: ## Microsoft to Pay Premium for Nuclear Power from Three Mile Island Plant
**[City, State] -** Microsoft has agreed to purchase electricity from the Three Mile Island nuclear plant in Pennsylvania, marking a significant step towards the tech giant’s commitment to clean energy. The deal, announced last Friday, involves a long-term power purchase agreement (PPA) with Constellation Energy, the plant’s operator.
The agreement will see the restart of Unit 1 at Three Mile Island, which was shut down in 2019 due to economic reasons. This would be the first time a U.S. nuclear power plant has been reopened after closing. Notably, Unit 2 at the plant was shut down in 1979 following a partial meltdown, one of the most significant nuclear accidents in U.S. history.
Analysts at Jefferies estimate that Microsoft will pay a premium price of $110-$115 per megawatt hour (MWh) for the electricity, exceeding market expectations of around $100 per MWh. This premium reflects the growing demand for clean energy sources, particularly from data centers powering AI technologies.
The deal highlights the increasing attractiveness of nuclear power for tech companies seeking sustainable energy solutions. With a 20-year fixed price PPA, Microsoft secures a reliable source of clean electricity, while Constellation benefits from a lucrative agreement that will help restart a crucial power facility.
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