The agreement would bring back Unit 1 at Three Mile Island, which was shuttered in 2019 for “economic reasons,” according to Constellation’s statement. Unit 1 is adjacent to the Unit 2 reactor that caused the worst nuclear meltdown in U.S. history on March 28, 1979, which results in 40% of people evacuating the area.

The Three Mile Island power plant will have a capacity of 835 megawatts, enough to power more than 700,000 homes. It is expected to create 3,400 direct and indirect jobs, according to the press release.

The decision to reopen the Three Mile Island reactor comes as tech companies are increasingly looking to nuclear energy to power their AI and data center needs, with Amazon Web Services spending $650 million on a nuclear-powered data center in Pennsylvania earlier this year. The trend could affect power grid reliability and affordability as it provides the businesses with “first dibs” on electricity, Pennsylvania Consumer Advocate Patrick Cicero told the WSJ in July.

Nuclear power has aroused public suspicion, largely due to incidents like Three Mile Island, Fukushima and Chernobyl, in which reactor meltdowns caused radiation to flood areas surrounding nuclear power plants. However, it could be a viable pathway to reducing emissions and accomplishing the Biden-Harris administration’s goal of having the U.S. power sector reach net-zero emissions by 2035.

“This is a valuable opportunity to invest in clean, carbon-free and affordable power — on the heels of the hottest year in Earth’s history,” Pennsylvania state Rep. Tom Mehaffie said in the Constellation press release. “This will transform the local economy and presents a rare opportunity to power our economy with reliable clean energy that we can count on.”

Constellation and Microsoft did not immediately respond to requests for comment.

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