The Department of Energy's Loan Programs Office has approved $1 billion in financing for Constellation Energy to restart the shuttered nuclear reactor at the former Three Mile Island facility in Pennsylvania. The 835-megawatt unit, which ceased operations in 2019, will provide carbon-free baseload power under a long-term agreement with Microsoft to support data center operations.

Rising electricity demand from artificial intelligence and data center expansion has prompted renewed interest in nuclear power as a reliable, emissions-free generation source. The reactor restart represents the first major nuclear capacity restoration project as utilities confront unprecedented load growth projections across technology sectors. Regional grid operator PJM fast-tracked interconnection reviews to accelerate the project timeline by approximately one year.

Constellation has initiated comprehensive infrastructure restoration including cooling tower renovations, main power transformer installation, and fuel procurement for the pressurized water reactor. The company has hired hundreds of specialized workers and completed initial equipment inspections as part of the multi-year restoration process. Nuclear Regulatory Commission approval and water-related permitting remain required before commercial operation.

The Loan Programs Office maintains over $250 billion in available capital with significant portions designated for nuclear project development. Energy Department officials indicated the loan structure protects taxpayers through Constellation's guarantee provisions while demonstrating federal support for large-scale nuclear generation. The financing approach marks the first simultaneous loan condition satisfaction and closure in the program's history.

Nuclear capacity additions address baseload power requirements that intermittent renewable sources cannot consistently provide. The project serves the PJM regional transmission organization covering thirteen states, where electricity supply auctions have reached record levels due to data center demand projections. Technology companies with climate commitments increasingly view nuclear power as essential for meeting both reliability and emissions reduction objectives.