US Approves $1 Billion Loan to Restart Three Mile Island Nuclear Reactor: What It Means for Energy, Tech, and the Future of Clean Power
In a major move for America’s clean-energy revival, the Trump administration has approved a $1 billion federal loan to help Constellation Energy restart a nuclear reactor at the historic Three Mile Island plant. This decision marks one of the most significant nuclear-energy investments in recent years and highlights the rapidly growing demand for carbon-free, always-on electricity—especially from Big Tech.
Microsoft Deal Sparks the Nuclear Comeback
Constellation Energy previously announced its intention to revive the reactor after Microsoft signed a long-term agreement to purchase 100% of the electricity generated by the plant for roughly the next 20 years.
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The reactor produces 835 megawatts of power
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It has been offline since 2019
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Constellation estimates the total refurbishment cost at $1.6 billion
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Targeted completion: 2028
Although financial terms are confidential, analysts at Jefferies predict that Microsoft may be paying $110–$115 per MWh, a premium compared to wind, solar, and geothermal energy—but still far cheaper than electricity from a brand-new nuclear plant.
Why Big Tech Is Betting Big on Nuclear Power
Tech giants are now aggressively turning to nuclear energy as AI models, cloud computing, and data centers consume unprecedented amounts of electricity.
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Meta recently partnered with Constellation as well, securing clean-energy credits from a 1.1-gigawatt nuclear plant in Illinois.
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AI data centers require stable, 24/7 power—something wind and solar struggle to deliver alone, even with batteries.
This trend signals a broader shift: nuclear energy is reemerging as a backbone for reliable, carbon-free electricity in the AI era.
Three Mile Island: What’s Being Restarted?
The reactor approved for revival is Unit 1, not the infamous Unit 2, which suffered the 1979 partial meltdown. Key details:
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Unit 1 commissioned: 1974
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Shutdown: 2019 due to low natural-gas prices making it unprofitable
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Restarting now thanks to federal financing + Microsoft partnership
This restart represents a historic moment for U.S. nuclear infrastructure—reviving an existing plant instead of building new reactors from scratch.
The Loan Programs Office: A High-Risk, High-Reward Engine of Clean Energy
The $1B loan comes through the Department of Energy’s Loan Programs Office (LPO), established in 2005 to accelerate advanced energy projects.
Notable history:
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The LPO funded Tesla with a $465 million loan in 2010 — paid back by 2013.
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It also issued a controversial loan to Solyndra, which later failed.
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Current LPO default rate after recoveries: only 3.3%, considered a strong performance for an innovation-focused program.
Just last month, the LPO finalized a $1.6 billion loan to American Electric Power to upgrade 5,000 miles of transmission lines.
How the Inflation Reduction Act Supercharged Nuclear Investment
A lesser-known portion of the Inflation Reduction Act created a new LPO branch called the Energy Infrastructure Reinvestment (EIR) Program.
Its mission: fund upgrades or restarts of existing energy facilities if they reduce emissions or improve environmental performance.
The Trump administration kept the program mostly intact, renaming it the Energy Dominance Financing Program (EDF).
Notably, the DOE’s press release mistakenly attributed the program to the Working Families Tax Cut Act, though its true authorization came from the One Big Beautiful Bill Act.