Politics · India Bureau
US revives shuttered nuclear plants to power data centre boom
The United States is undertaking an unprecedented effort to restart three decommissioned nuclear power plants, backed by USD 4.4 billion in federal loans. The move reflects surging electricity demand from artificial intelligence data centres and the growing appeal of carbon-free energy sources.
LSN India ·
The Department of Energy is financing the restart of the Palisades Power Plant in Michigan, the Crane Clean Energy Centre at Pennsylvania's Three Mile Island, and the Duane Arnold Energy Centre in Iowa. The three facilities, which collectively generated 2.25 gigawatts of electricity before closure, could supply power to approximately 2 million homes and businesses once operational.
No commercial nuclear reactor is known to have resumed electricity generation after entering formal decommissioning, making this initiative a milestone for the global nuclear industry. The plants had all ceased operations before their operating licenses expired, primarily due to the high cost of electricity generation relative to alternative energy sources.
Market conditions have shifted dramatically in recent years. Two of the three plants have secured contracts with major technology companies willing to pay premium prices for large quantities of carbon-free electricity to power data centres. This demand from the artificial intelligence sector has fundamentally altered the economics of nuclear power generation.
The revival of these facilities underscores broader efforts to expand nuclear capacity as nations seek reliable, emissions-free electricity sources. The project addresses dual challenges: meeting unprecedented energy demands from emerging technologies while maintaining carbon-neutral power generation.