Power-Hungry AI Has Brought the Nuclear Economy Back to Life

Shah Gilani|October 25, 2024

AI is like a teenager hitting a growth spurt…

Just like parents scrambling to keep the pantry stocked for their rapidly growing teen, our energy infrastructure is racing to keep up with AI’s voracious appetite for power.

Energy demand is soaring, driven by AI and its data centers…

And it’s giving nuclear energy new life. The need to reopen, relicense, and modernize existing nuclear facilities has never been more critical.

This transformation is key not only for meeting the nation’s energy needs but also for securing a sustainable and stable power supply in the face of climate change.

One of the most compelling examples of this nuclear revival is the rebranding of the Three Mile Island Unit 1 (TMI-1) as the Crane Clean Energy Center (CCEC).

TMI-1 was shut down in 2019 due to unfavorable economic conditions in Pennsylvania. But renewed interest in nuclear energy has led to plans for its reopening.

As we mentioned a few weeks ago, Microsoft signed a 20-year contract to purchase energy generated by the CCEC. It’s part of the tech giant’s commitment to power its data centers with carbon-free energy.

Five years ago, TMI-1 was sidelined largely due to low natural gas prices and a lack of incentives for nuclear energy in the region. However, as nations worldwide pursue electrification to support their digital economies and combat climate change, the advantages of nuclear energy are increasingly recognized.

With the ability to provide reliable, carbon-free energy around the clock, nuclear plants can run for up to two years without needing refueling. That makes them an ideal solution for today’s energy landscape.

The reopening of TMI-1 as the CCEC is not just an energy project. It represents a significant economic opportunity.

Powering the Economy

The Brattle Group conducted an impact study revealing that the new CCEC will create approximately 3,400 direct and indirect jobs, add over 800 megawatts of carbon-free electricity to the grid, and contribute an estimated $16 billion to Pennsylvania’s gross domestic product.

The project is forecasted to generate over $3 billion in state and federal taxes.

Joe Dominguez, president and CEO of Constellation Energy, the energy giant behind the Crane Center deal, highlighted the importance of nuclear energy for industries critical to the nation’s competitiveness…

Powering industries requires an abundance of energy that is carbon-free and reliable every hour of every day, and nuclear plants are the only energy sources that can consistently deliver on that promise.

And here’s what’s key to the nuclear resurgence…

Public sentiment toward nuclear energy is shifting.

According to a recent Pew Research Center survey, the percentage of U.S. adults supporting nuclear power has increased from 43% in 2020 to 56% in 2024.

This generational shift indicates that younger folks are more likely to advocate for nuclear energy, driven by concerns over climate change and the need for sustainable energy solutions.

Adam Stein from the Breakthrough Institute observed that many of the new advocacy groups pushing for nuclear expansion are led by people under 40, contrasting with the older demographics that often oppose nuclear power.

The Nuclear Regulatory Commission is also adapting to this resurgence by seeking public comment on a proposed rule for a generic environmental impact statement for licensing new reactors.

This initiative aims to identify common environmental issues associated with new reactors while allowing for project-specific analyses.

Recognizing the importance of local community involvement, Constellation has pledged $1 million in philanthropic support over the next five years to enhance workforce development and meet community needs in the Middletown area.

This commitment reinforces their dedication to maintaining strong relationships with local stakeholders, ensuring that the benefits of the CCEC extend beyond energy production.

The comeback of nuclear energy in America, highlighted by projects like the Crane Clean Energy Center, is a pivotal moment in the transition to a cleaner, more reliable energy future.

With its potential to provide stable, carbon-free electricity and stimulate economic growth, nuclear power stands as a crucial player in the fight against climate change and the demands of a rapidly evolving technological landscape.

As public support grows and regulatory frameworks adapt, nuclear energy is poised to reclaim its place as a cornerstone of America’s energy strategy.

And we’ll be looking for the best opportunities to profit from it.