U.S. Approves $1B Loan to Restart Three Mile Island as AI Power Needs Surge

The U.S. government has approved a sweeping $1 billion federal loan to Constellation Energy to revive the shuttered Three Mile Island facility—one of the most historic nuclear sites in the world. The Three Mile Island nuclear restart is now a centerpiece of the Trump administration’s strategy to rapidly expand reliable baseload energy to match America’s accelerating artificial intelligence boom.

Bringing a Dormant Nuclear Asset Back Online

Three Mile Island, located near Middletown, Pennsylvania, has been largely dormant since its notorious 1979 partial meltdown. The second, undamaged reactor continued operating for decades but was ultimately closed in 2019 due to high operating costs.

Constellation Energy now plans to overhaul and revive that reactor by 2027 at a projected cost of $1.6 billion—partially supported by the federal loan. Under a 20-year agreement, Microsoft will purchase the electricity directly to power its rapidly expanding AI data-center network. Once operational, the Three Mile Island nuclear restart will add roughly 800 megawatts of steady, around-the-clock energy to the U.S. grid.

“We want to get as much reliable electricity on the grid as quickly as possible,”
— Energy Secretary Chris Wright

AI Is Rewriting U.S. Energy Policy

AI-driven power consumption is growing so fast that utilities, regulators, and tech giants are now collaborating on long-term, guaranteed energy supply. Unlike solar and wind, large-scale nuclear provides the 24/7 stability required for model training and inference workloads.

The administration’s broader goal is to quadruple nuclear generation—from today’s 100 gigawatts to 400 gigawatts by 2050. The Three Mile Island nuclear restart is being touted as a template for expediting upgrades and restarts of older nuclear sites with updated regulatory guidance from the Nuclear Regulatory Commission.

Why Nuclear Is Suddenly Back in Favor

For years, nuclear struggled to compete with cheap natural gas and rapidly expanding renewables. But geopolitical instability—especially Russia’s invasion of Ukraine—reshaped global sentiment. France, Japan, and the United Kingdom are all pursuing nuclear expansion plans of their own.

The U.S., meanwhile, faces a surge in energy demand as hyperscalers—Microsoft, Amazon, Google—race to build AI data centers consuming more electricity than entire cities. The Three Mile Island nuclear restart directly addresses this shortfall and signals a shift toward nuclear as a core component of the AI economy.

What Traders Should Watch Now

⚡ Constellation Energy (CEG) – Beneficiary of the Nuclear Revival

• Long-duration contract revenue with Microsoft boosts financial visibility.
• Federal loan support lowers execution risk on the restart timeline.
• CEG remains a strong candidate for trend-following setups on pullbacks.

⚡ Microsoft (MSFT) – Securing Energy for Growth

MSFT is locking in predictable power pricing for two decades, a major advantage as AI workloads scale. Traders should monitor whether reduced energy uncertainty translates into improved AI segment guidance in future earnings.

⚡ Uranium & Nuclear ETFs (URA, NLR)

Sector ETFs often react strongly to nuclear policy announcements. Breakouts above recent highs could offer continuation setups.

⚡ Utility Stocks in High-Growth AI Regions

The Three Mile Island nuclear restart may spark similar deals nationwide. Utilities positioned near major data-center clusters (Northern Virginia, Arizona, Texas, Ohio) could experience re-rating events.

Bottom Line

The Three Mile Island nuclear restart represents one of the most significant intersections yet between AI and U.S. energy policy. With Microsoft now directly influencing nuclear strategy—and the federal government aggressively backing restarts—the return of nuclear is no longer theoretical.

For traders, this marks the beginning of a multi-year theme: the AI-energy complex. Nuclear, utilities, hyperscalers, and infrastructure providers are now tightly intertwined—and ripe for event-driven opportunities.

Read CNBC’s coverage here Trump backs Three Mile Island restart with $1 billion loan to Constellation
Microsoft (MSFT), Constellation Energy (CEG) $1B loan granted to reopen Three Mile Island plant