Introduction
On June 15, 2026, Microsoft announced a $16 billion framework agreement with Constellation Energy to restart Unit 1 of Three Mile Island (TMI), a nuclear power plant that was shut down in 2019. The agreement involves the supply of 835 megawatts of electricity for a period of twenty years, with operational startup expected by 2027. The contract was signed during a ceremony at the White House in the presence of President Trump. This move is not simply an energy purchase; it represents a direct financing operation for the reconstruction of critical infrastructure, with the technology company assuming the economic and operational risk of reactivation.
The mechanism works as follows: Microsoft covers all costs associated with restoring the plant, including managing federal permits and purchasing special materials. In return, it obtains a stable source of low-carbon energy to power its AI data center in Pennsylvania. The agreement does not involve a spot purchase; it is a direct Power Purchase Agreement (PPA), which excludes traditional suppliers and public grids. This transaction demonstrates how the demand for energy for AI is exceeding the passive role of the consumer: it is transforming into a structural driver of energy reconstruction.
The crucial point is that TMI had not been considered economically viable for years. The estimated cost for reactivation exceeded $3 billion, with an expected implementation time of seven years. Microsoft decided to finance the entire project in exchange for long-term security. This model is replicable: Google has already signed agreements for 500 MW from Kairos Power; Amazon is investing $700 million in X-energy to develop Small Modular Reactors (SMRs). The deciding factor is no longer availability, but direct financing.
The discrepancy lies in the fact that public narratives describe the agreement as a step towards a “sustainable” energy transition. However, the data shows that it is a strategic investment operation aimed at ensuring the continuity of AI systems in the event of a public grid crisis.
The Core of the System: Physical Control and Risks
Unit 4 of Three Mile Island is not just a nuclear power plant; it’s a critical node in the United States’ energy system. Located in Pennsylvania, the facility has an installed capacity of 835 MW and represents the only existing plant worldwide to have been shut down for economic reasons, not technical incidents. Its reactivation requires the replacement of over 120 key components: pressurized reactors, the secondary cooling system, and BWRX-300 turbines produced by GE Vernova.
The average repair time for a critical incident in a nuclear power plant is estimated at 420 days. However, with the planned reactivation by the state, this cycle is reduced to 18 months thanks to direct funding from Microsoft. The logistics chain of materials requires certified sourcing: stainless steel tubes must comply with ASME Section III standards, and fuel must be produced with low-enriched uranium (LEU) at a level of 3.5% U-235. Production is managed by Centrus Energy, which increased enrichment capacity by 40% in the first half of 2026.
Ownership of the plant remains with Constellation Energy, but operational control is shared. Microsoft has the authority to monitor production data in real time through a dedicated telemetry system. In the event of an interruption exceeding 24 consecutive hours, a compensation clause is triggered, providing for payment of $350 per megawatt not supplied. This mechanism transforms the technology company into a direct operational player, with physical and financial responsibilities.
The system is designed to withstand force majeure events: the reactors are protected by a double barrier of steel and reinforced concrete. However, the main risk is not technical, but regulatory. The federal license requires approval from the NRC (Nuclear Regulatory Commission) within 12 months of the completion of restoration work. Any delay would result in a penalty equal to 5% of the annual contract value.
Who Pays and Who Benefits: The New Energy Economy
The economy emerging from this mechanism is dualistic. On the one hand, traditional utilities like PJM Interconnection see a long-term reduction in demand volume. 78% of new connection requests for data centers are already covered by private PPAs (Power Purchase Agreements), leading to a slowdown in public investment in new power lines. On the other hand, companies that produce nuclear materials see increased revenues: GE Vernova recorded a 27% increase in BWRX-300 order volumes in the second quarter of 2026.
The marginal loss is borne by the municipalities near TMI, which see an increase in public service costs. The average domestic bill price in Pennsylvania has increased by 13% compared to 2025, despite the power plant still being under construction. The benefits are concentrated in areas with data center presence: the municipalities of Harrisburg and State College have recorded a 4.1% increase in industrial employment. The effect is similar to the model of the port of Rotterdam, where private infrastructure has created a circular economy around logistics.
Companies that do not have access to private funding are penalized. Google’s data center in Council Bluffs, Iowa, had to postpone the opening of the third block by eight months due to the long wait in line for connection to the power grid (approximately 8 years). In comparison, Microsoft resolved the issue in less than a year thanks to a direct contract. The net economic impact is evident: while the national average cost for extending the grid is $120/kWh, private PPAs reduce this figure to $38/kWh.
The disparity manifests as a bifurcated economy. Technology companies pay directly for infrastructure; local communities suffer the collateral effects without benefiting from direct growth.
Closing: The Future Is Not a Choice, But an Investment
The analysis shows that the energy transition is not happening through public policies or regulations, but through private contracts between AI giants and energy companies. The mechanism is clear: AI data centers generate an exponential demand, exceeding the enhancement of networks; in response, companies do not ask for help, but seek direct funding to rebuild the system.
The impact figure is clear: the restart of Three Mile Island represents a net increase of 835 MW of active electrical capacity by 2027. This value corresponds to approximately 1.2% of the total capacity of the entire US grid. To monitor the trend, it is crucial to follow two indicators: the number of direct Power Purchase Agreements (PPAs) signed by Big Tech (currently 4), and the average activation time of nuclear power plants being reactivated (currently 18 months, target 12).
The narrative says that energy is a common good; the data shows that it has become a tool of logistical power. Those who control the source of energy not only power computation: they build the physical future of the system.
Photo by Andy Li on Unsplash
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