Tech companies like Microsoft are actively seeking new sources of clean energy to support their growing operations. Microsoft recently announced a 20-year deal with Constellation to restart a nuclear reactor at Pennsylvania’s Three Mile Island, which was shut down in 2019 due to economic issues. The reactor, called TMI Unit 1, is being renamed the Crane Clean Energy Center and is expected to become operational by 2028. This move is part of Microsoft’s efforts to help decarbonize the grid and meet ambitious carbon reduction targets.
The power purchase agreement between Microsoft and Constellation is seen as a win for Pennsylvania’s economy and a key milestone in the clean energy transition. Constellation CEO Joseph Dominguez emphasized that TMI Unit 1 was one of the safest and most reliable power generators in the U.S. Microsoft’s Vice President of Energy, Bobby Hollis, stated that the company is dedicated to adding carbon-free electricity in the grids where they operate, in order to achieve their goal of becoming carbon negative by 2030. This includes exploring various sources of clean power, such as nuclear, wind, solar, fusion, sustainable biomass, and batteries.
Microsoft’s increased demand for power is due to the construction of new data centers that support the use of artificial intelligence and generative AI. As the company looks to secure clean energy sources, it is also exploring emerging technologies like fusion energy. In May 2023, Microsoft signed a power purchase agreement with Helion Energy, a fusion startup in the Seattle area, with the aim of buying electricity from a commercial fusion power plant if Helion is able to deliver on its plans by 2028. Amazon is also expanding its clean energy portfolio to support its data center growth, with AWS spending $650 million on a data center in Pennsylvania that is powered by a nuclear plant.
Despite the efforts of tech companies to secure clean energy sources, there is still a gap in meeting the demand for carbon-free energy. Microsoft and Amazon are among the companies that are turning to coal and natural gas to supply electricity for their data centers. This reliance on fossil fuels contradicts their carbon reduction goals and the need to preserve the climate. This highlights the challenge faced by tech companies in balancing their energy needs with their sustainability goals, as they race to secure clean energy sources and prevent further harm to the environment.
The increased interest in nuclear power and fusion energy by tech companies reflects a broader trend in the clean energy sector. Companies are actively exploring various sources of clean power in order to reduce their carbon footprint and meet sustainability goals. As the demand for electricity continues to rise, particularly in the tech industry, the need for viable clean energy sources becomes more urgent. Companies like Microsoft and Amazon are leading the way in investing in clean energy solutions to support their operations while minimizing their impact on the environment.
