Key Takeaways:
- The Trump administration has officially loaned Constellation Energy $1 billion to restart a nuclear reactor at the former Three Mile Island site in Pennsylvania.
- The project is driven by rising U.S. power demand, fueled by technologies like artificial intelligence and data centers, with Microsoft already signed on to purchase power.
- The reactor, which shut down in 2019, is on an accelerated timeline to come back online by 2027.
- The loan is guaranteed by Constellation to protect taxpayers and is part of a broader federal push to support large-scale, carbon-free nuclear energy projects.
The Trump administration announced Tuesday it has provided a $1 billion loan to Constellation Energy, marking a significant step toward restarting a nuclear reactor at the Pennsylvania plant famously known as Three Mile Island. The move signals a major investment in nuclear power to meet the country’s growing energy needs.
The reactor, part of the newly named Crane Clean Energy Center, was shut down in 2019. Its revival is now backed by a deal with Microsoft, which will use the clean energy to power its electricity-hungry data centers.
Powering the Future with Nuclear Energy
For the first time in two decades, U.S. power demand is on the rise, largely driven by the expansion of artificial intelligence and other advanced technologies. This has put a renewed focus on nuclear energy, a virtually carbon-free source that provides the uninterrupted power tech companies require to meet their climate pledges.
Greg Beard, head of the Department of Energy’s Loan Programs Office (LPO), emphasized the strategic importance of the project. “This type of energy is important because it’s large, stable, affordable base load power,” Beard told reporters, noting that the restart would support the regional PJM grid.
A Government-Backed Revival
The $1 billion loan comes from the LPO, which has over $250 billion in capital to support energy initiatives. Beard stated that a “large portion” of these funds is expected to “reinvigorate the large-scale nuclear reactor development” in the United States. Energy Secretary Chris Wright confirmed this month that the bulk of the LPO’s capital would be directed toward nuclear projects.
For Constellation, the federal loan will lower financing costs and help attract private investment to get the reactor back online. While critics of nuclear power often point to the unresolved issue of long-term radioactive waste storage, proponents see it as essential for a stable, clean energy grid.
Protecting Taxpayer Interests
Beard explained that the loan structure is designed to be secure for taxpayers. Constellation, an established “investment-grade” nuclear operator, is guaranteeing the loan. He noted that while the company could have secured a private bank loan, the government’s involvement is a clear statement of support.
“We want to show support for affordable, reliable, stable, secure energy in the U.S., as directed by President (Donald) Trump,” Beard said.
The Path to Restart
Constellation has already accelerated its timeline for the project, now aiming for a 2027 restart after its review process was fast-tracked. The company has hired hundreds of workers, completed crucial infrastructure inspections, and ordered major equipment.
Before the reactor can begin producing electricity again, significant work remains, including revamping cooling towers, installing a new main power transformer, and refueling. The project must also secure final permits from the U.S. Nuclear Regulatory Commission and for water-related needs.
Image Referance: https://www.cnn.com/2025/11/18/business/three-mile-island-restart-trump