Microsoft-backed Three Mile Island reboot meets data centre backlash

A 262-tonne transformer shipped from South Korea reached Pennsylvania this week as the state moves forward with plans to reactivate the Three Mile Island nuclear reactor. The project marks a pivotal moment in assessing whether major technology firms leading the artificial intelligence revolution can develop new energy sources without facing further public resistance, especially given growing concerns over energy costs and environmental issues. The company responsible for the Three Mile Island restoration, Constellation Energy, released footage showing the arrival of the first of three large transformers at the Middletown site via a specially designed truck. Constellation Energy aims to restart Unit 1 of the reactor, which it has rebranded as the Crane Clean Energy Centre. This initiative is closely tied to the current AI boom, which requires substantial energy to support the increasing number of data centers handling complex computational demands. The revival of Unit 1 follows a 2024 announcement of a partnership between Constellation and Microsoft. Under this agreement, Microsoft committed to a 20-year power purchase contract with Constellation to supply energy for its data centers. However, the landscape has shifted significantly since 2024, with public perception of AI and data centers turning more negative. A growing opposition to the construction of data centers has become a prominent topic ahead of the upcoming U.S. midterm elections in November. Local communities are expressing concern over the noise generated by these facilities, their high water usage for cooling systems, and the increase in electricity costs. Additionally, voters are becoming increasingly cautious about the potential effects of AI on employment. Pennsylvania Governor Josh Shapiro, a Democrat, recently introduced new rules and regulations aimed at holding data center developers more accountable to local residents. These measures are intended to make it harder for developers to construct such facilities without meeting specific criteria. Despite this regulatory shift, Governor Shapiro remains supportive of the collaboration between Constellation and Microsoft, viewing it as part of a broader strategy encompassing various forms of energy production, including nuclear power. According to a spokesperson from his office, the Three Mile Island project addresses some criticisms related to AI by ensuring that Microsoft contributes energy to the national grid through its partnership with Constellation. Nonetheless, the alliance between Constellation Energy and Microsoft continues to provoke unease among certain groups. Three Mile Island Unit 1 is located near Three Mile Island Unit 2, the location of one of the worst nuclear incidents in American history. In March 1979, the core of Unit 2 was partially exposed, resulting in a temporary evacuation of the surrounding area and a prolonged cleanup effort in Middletown that persists today. This incident gave rise to the grassroots organization known as Three Mile Island Alert, dedicated to promoting energy safety standards in Pennsylvania. Eric Epstein, director of Three Mile Island Alert, stated that his organization is actively opposing the restoration and operation of TMI Unit 1. Beyond safety considerations, Epstein pointed out the $1 billion taxpayer loan granted to Constellation last year to accelerate the reactor’s restart. His group has also raised objections regarding the reactor’s planned use of water from the nearby Susquehanna River. Although the Susquehanna River Basin Commission approved increased water usage at Three Mile Island, nearly all of the 440 public comments submitted were against the proposal.