Constellation Energy got a small boost after the federal government approved a $1 billion loan to help bring the long-idle Three Mile Island reactor back online. The plan is straightforward. AI demand is exploding, the grid is getting squeezed, and Washington wants more nuclear in the mix. $CEG ( ▼ 3.27% )
Constellation already has a 20-year agreement to supply power to Microsoft’s AI data center division, which is turning into one of the hungriest energy customers in the country. Restarting the plant will cost about $1.6 billion, so the loan helps bridge the gap and keep the project moving toward reality.
Three Mile Island is not exactly an ordinary asset. The site is best known for the 1979 partial meltdown in Unit 2, the worst commercial nuclear accident in U.S. history. The reactor Constellation intends to restart is the other unit, shut down in 2019 after it became too expensive to operate.
If approved and fully funded, the restart would mark one of the biggest nuclear comebacks in years. It also signals how far the energy conversation has shifted. AI is forcing utilities to rethink their playbook, and even aging nuclear plants are getting a second look.