Microsoft is in the middle of a deal that would bring the infamous Three Mile Island nuclear power plant back to life. According to a report by The Washington PostIf the name sounds familiar, it's because the Pennsylvania plant experienced a partial meltdown of one of its reactors. In 1979.
The deal would make Microsoft the sole customer of the plant for 20 years, meaning it would absorb 100 percent of the power for itself. Why does the company need so much power? You can guess. It's for ai, which is ai/2024/04/power-hungry-ai-is-putting-the-hurt-on-global-electricity-supply/” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:notoriously power hungry;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>notoriously power hungryLook, if it takes an entire nuclear power plant for us to be able to ask Bing to print out a picture of Steve Urkel in space riding a skateboard, then we have to do it. It's the future… or whatever.
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We're restarting Three Mile Island Unit 1 as Crane's new Clean Energy Center! Through a 20-year agreement, Microsoft will use the refurbished plant's energy to help match the power its PJM data centers use with carbon-free electricity.
More information https://t.co/NfKGdJgMA0 twitter.com/z9ydxDXw1U;elm:context_link;itc:0;sec:content-canvas” class=”link “>photo.twitter.com/z9ydxDXw1U
— Constellation (@ConstellationEG) twitter.com/ConstellationEG/status/1837099294723096654?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:September 20, 2024;elm:context_link;itc:0;sec:content-canvas” class=”link “>September 20, 2024
Let's break this down a bit further. If regulators approve this deal, Three Mile Island will provide Microsoft with enough energy to power 800,000 homes. Again, no homes will be getting that power, but don't worry. Microsoft will be able to hold a live event to show off some ai-powered video generation tools or something.
I know I'm coming across as a total troglodyte, but there is a silver lining. This could help Microsoft make good on its promise to boost ai development with emissions-free electricity. It's not like these companies would give up on ai if there wasn't a decommissioned nuclear power plant, so this move could help alleviate some of the pressure already being placed on our power grid by old ai.
If approved, this would be a groundbreaking deal for a couple of reasons. Never before has a commercial power plant worked exclusively for one customer. It will also be the first time a decommissioned power plant has been brought back online. It is worth noting that the plant closed five years ago for economic reasons, which have nothing to do with the Partial collapse from 1979 onwardsThe current plan is for it to resume operations in 2028.
“The energy industry can’t be the reason why China or Russia overtake us in artificial intelligence,” said Joseph Dominguez, chief executive of Constellation, the company that owns the plant. I’d take his jingoistic language with a grain of salt, though, as Constellation stands to make a ton of money from this deal.
Let's do some math. The annual profits of a nuclear power plant average $470 millionMicrosoft will be the exclusive purchaser of this power for 20 years, for a total of $9.4 billion. Constellation is spending $1.6 billion to get the plant up and running again, along with federal subsidies and tax breaks provided by the Inflation Recovery Act. That leaves $7.8 billion in very sweet profits. It's just an estimate, but you get the idea. The company is x.com/ConstellationEG/status/1837100059298566372″ rel=”nofollow noopener” target=”_blank” data-ylk=”slk:does promise $1 million;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>Are you promising a million dollars? in “philanthropic donations to the region” over the next five years. That amounts to $200,000 a year.
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To ensure the local community fully shares in the economic benefits of restarting the facility, Constellation has committed an additional $1 million in philanthropic donations to the region over the next five years to support workforce development and other community needs.
— Constellation (@ConstellationEG) twitter.com/ConstellationEG/status/1837100059298566372?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:September 20, 2024;elm:context_link;itc:0;sec:content-canvas” class=”link “>September 20, 2024
It's not a done deal. There are plenty of regulatory hurdles that Constellation will have to jump through. This includes intensive safety inspections by the federal Nuclear Regulatory Commission, which has never authorized a plant to reopen. There's also likely to be an investigation into the aforementioned tax breaks, since all the power goes to a private company and not entire communities. But come on, Steve Urkel on a skateboard in space.
On the plus side, Constellation will need around 600 employees to operate the plant, According to the The New York TimesThe jobs are good. Plus, the company says it won't seek additional subsidies from Pennsylvania. The Palisades nuclear plant in Michigan is also Looking to reopen for businessbut its goal is to serve the local network and not the vast maw of ai.
