The Crane Clean Energy Center is the new name for Three Mile Island, a site in Pennsylvania now poised for a significant comeback in the energy sector. Constellation Energy aims to restart operations at this iconic facility with a targeted operational date set for the second half of 2027. This ambitious project carries a price tag of approximately $1.6 billion, bolstered by a unique advantage: Microsoft has committed to a 20-year power purchase agreement, ensuring that the energy produced—around 835 megawatts—will feed its expanding data centers.
The reactor, previously known as Three Mile Island Unit 1, was shut down economically in September 2019 after serving for over 40 years. It is important to clarify that this unit is distinct from the one involved in the notorious 1979 partial meltdown, which is permanently offline. The facility received a name change approval from the Nuclear Regulatory Commission in May 2025, symbolizing a new chapter for a site with a complex history. A decision from regulators regarding the restart is expected early in June 2026.
A significant financial boost came from the US Department of Energy, which announced a $1 billion loan in November 2025 to support the facility's restart. Given the restart cost of about $1,916 per kilowatt, this initiative is considerably more economical compared to building a new nuclear plant, which typically exceeds $10,000 per kilowatt when accommodating for delays and overruns.
However, challenges exist. PJM Interconnection, the regional grid operator covering 13 states and D.C., raised concerns about potential delays in grid connection, suggesting the timeline could extend to 2031. In response, Constellation filed for waivers, emphasizing that existing infrastructure could streamline the process. Constellation's CEO is committed to a 2027 operational timeline, citing close collaboration with regulatory agencies to navigate this complex landscape effectively.
Furthermore, the partnership with Microsoft aligns with a growing trend wherein major tech firms are seeking reliable, clean energy sources to support their operations. As the demand for data centers escalates, particularly with advancements in artificial intelligence, clean baseload power becomes vital. A single AI training project can consume electricity equivalent to the annual usage of thousands of American homes.
Investors looking at Constellation Energy may see the Crane Clean Energy Center as a strategic investment opportunity. The project reflects converging trends in the realms of AI energy demand, nuclear energy revival, and solid federal support for clean energy infrastructure. The backing of the DOE reduces risks, while the long-term Microsoft agreement ensures financial predictability into the next two decades.
Nonetheless, potential risks loom, mainly surrounding regulatory issues. If the Federal Energy Regulatory Commission denies waiver requests and adheres to longer connection timelines, project economics could shift unfavorably. Additionally, there is a well-documented history of cost overruns in nuclear construction that could impact the financial outlook.