The Power of AI: Microsoft’s Nuclear Energy Plan

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AI’s Energy Problem 

Currently, in the Fourth Industrial Revolution, the world has seen the accelerating trajectory of technological advancements, specifically in artificial intelligence (AI). Breakthroughs in AI have spurred research and interest in this field with widespread adoption of AI tools. However, with the rising demand for AI comes the corresponding necessity for large amounts of computing power. Goldman Sachs forecasts that data centers will increase total global electricity consumption from 1 to 2 percent to 3 to 4 percent by 2030; which marks around a 160 percent increase that will greatly strain the electricity sector. Moreover, meeting the 2030 energy targets has proven difficult for big technology companies, as AI data centers require a great deal of electricity for data storage, AI model training, and other operations, which entails significant burning of fossil fuels and greenhouse gas emissions. Thus, the urgency for the clean energy transition will likely prompt companies to explore alternative power sources to fulfill AI’s increasing demand. One possible solution to this issue may be nuclear energy. Although nonrenewable, nuclear energy provides highly reliable, around-the-clock, and carbon-free power that can potentially keep up with AI energy needs. Bill Gates, the co-founder and former chief executive officer of Microsoft, has been keen on advocating for climate-friendly resources. In 2006, he founded the nuclear power company TerraPower focused on producing sufficient and reliable energy. Now he has set his eyes and opened his pockets for another investment to support the infrastructure behind AI. 

Microsoft’s Revival of Three Mile Island 

Three Mile Island (TMI) is a nuclear power plant in Pennsylvania owned by Constellation Energy Corporation. In 1979, a malfunction in one of the two reactors released radiation and caused the evacuation of thousands from the peripheral area. Although numerous investigations deemed the health and environmental impacts negligible and not directly attributable to the accident, this event is remembered as one of the most significant nuclear disasters in history because it exposed significant technical failures and safety protocol flaws. The TMI-2 accident, as it’s known due to the mechanical failure in the second unit of the plant, was pivotal to the nuclear power industry, prompting changes in global regulations and protocols while shifting public perceptions of nuclear energy. The second reactor was permanently shut down and in 2019, the TMI-1 reactor was closed for economic reasons. 

On Sept. 20 this year, Constellation announced its partnership with Microsoft to reopen TMI-1 under the name, Crane Clean Energy Center (CCEC), with Bill Gates investing $1 billion in this project. Under this 20-year plan set to begin in 2028, Microsoft will purchase energy to fuel AI data centers. Plus, the CCEC will pursue sustainable energy incentives via the Pennsylvania-New Jersey-Maryland (PJM) Interconnection that can directly deliver energy to Microsoft’s data centers in this larger area.

Implications 

This project is predicted to create around 3,400 jobs and contribute billions of dollars to Pennsylvania’s gross domestic product and state and federal taxes. Besides economic benefits, for everyday AI users and ChatGPT connoisseurs, this partnership will mean better performance and decreased latency and network issues because of the reliable energy source. Also, this project will bolster Microsoft’s Azure OpenAI Service that powers numerous AI applications including ChatGPT. 

Overall, the CCEC initiative between Microsoft and Constellation to revive TMI-1 marks a step toward more sustainable and reliable energy. The abundance of electricity created by nuclear energy can fuel further enhancements for AI applications.