US Government Funds Restart of Three Nuclear Reactors for AI Data Center Power
Federal loans are enabling the restart of three offline nuclear plants to supply stable energy for growing artificial intelligence infrastructure demands.
Key points
- Three US nuclear reactors are restarting to provide 2.25 GW of power.
- The Palisades plant is the first reactor to restart after decommissioning began.
- Microsoft has signed a 20-year contract for power from the Crane facility.
The United States government is financing the restart of three nuclear reactors that had been offline for years, aiming to supply stable electricity for expanding artificial intelligence data centers. According to a report by Tom's Hardware, these facilities will collectively add 2.25 gigawatts of capacity to the national grid, addressing the surging power requirements of modern computing infrastructure.
The Palisades Nuclear Plant in Michigan, the Crane Clean Energy Center in Pennsylvania, and the Duane Arnold Energy Center in Iowa are the specific sites undergoing revitalization. Holtec Palisades is managing the Michigan project, which is currently the most advanced of the three. The company began loading fuel in August 2026 and expects the reactor to generate 800 megawatts of power by March 2027.
Federal Funding and Project Status
Financial support for these restarts comes from the US Department of Energy, with loans issued under different administrative periods. Holtec Palisades secured its loan under the Biden administration's 2024 nuclear energy investment program. In contrast, the other projects received funding through the Trump administration's 2025 push for nuclear energy initiatives, reflecting a continued bipartisan interest in expanding domestic nuclear capacity for high-demand industrial uses.
The Crane Clean Energy Center project involves repurposing Unit 1 of the Three Mile Island facility in Pennsylvania. Constellation Energy stated it would invest $1.6 billion total into the reactor's restoration. The company obtained a $1 billion loan from the Department of Energy in 2025 to support this effort. Microsoft is designated as the primary customer, having secured a 20-year power purchase contract for the facility's output.
Historical Context and Regulatory Oversight
The Three Mile Island site is historically significant due to the partial meltdown of Unit 2 in 1979, an event that had limited environmental consequences. The current project focuses exclusively on Unit 1, which operated without significant issues until its decommissioning in 2019. The Nuclear Regulatory Commission has conducted a safety inspection of the unit, but the agency must still grant final approval before fuel loading can commence.
The Palisades project marks a notable operational milestone, as it is reportedly the first time a nuclear reactor is being returned to service after active decommissioning work had already begun. Despite the challenging starting point of reversing dismantling processes, the project remains on track for its 2027 generation target, demonstrating the feasibility of restarting previously retired nuclear assets.
What should you do?
Technology leaders and energy planners should monitor regulatory approvals for these facilities, as delays could impact power supply timelines for data center expansions. Organizations relying on stable power for AI workloads should evaluate long-term energy contracts and diversify their supply sources to mitigate risks associated with single-point energy failures.
What to do and how to stay safe: nuclear energy
- Monitor Nuclear Regulatory Commission announcements for final safety approvals on the Three Mile Island Unit 1 restart.
- Review data center energy contracts to ensure they account for potential delays in new power source availability.
- Assess the reliability of local grid infrastructure in regions hosting major AI compute clusters.
- Track Department of Energy loan disbursements to gauge the progress of federal nuclear restart initiatives.
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Frequently asked questions
How much total power will the restarted reactors provide?
The three reactors are expected to bring a total of 2.25 gigawatts to the grid.
Which company is the main customer for the Crane Clean Energy Center?
Microsoft is the main customer, with a 20-year contract for the facility's power output.
Is the Palisades plant the first reactor to restart after decommissioning?
Yes, it is the first nuclear reactor being put back to work after dismantling had begun.
