$1 billion is loaned by the Energy Department to support the restart of the nuclear plant on Three Mile Island.

At dawn on June 25, 2025, the cooling towers at Constellation's nuclear power station on Three Mile Island, known as the Crane Clean Energy Center, close to Middletown, Pennsylvania, are reflected in the Susquehanna River.

HARRISBURG, Pa. — The U.S. Department of Energy announced on Tuesday that it will provide a $1 billion loan to support the restart of the nuclear power plant located on Pennsylvania's Three Mile Island, which is contracted to provide power to Microsoft's data centers.

The financing aligns with President Donald Trump's administration's aims, which include advancing artificial intelligence and nuclear power.

The federal loan will reduce Constellation Energy's finance costs to restart the mothballed nuclear power station on Three Mile Island. According to the Department of Energy, the 835 megawatt reactor has the capacity to power almost 800,000 homes.

When Constellation Energy announced last year that it will invest $1.6 billion to restart the reactor under a 20-year contract with Microsoft to purchase the power for its data centers, the reactor had been shut down for five years.

In order to rebuild the turbine, generator, main power transformer, and cooling and control systems, Constellation Energy dubbed the operational unit the Crane Clean Energy Center. In 2027, it intends to restart the facility.

The loan is being given out as part of a $250 billion energy infrastructure initiative that Congress first approved in 2022. The loan terms were not disclosed by Constellation or the department.

In 1979, the nation's worst commercial nuclear power accident occurred at the plant, which is located on an island in the Susquehanna River just outside Harrisburg. The plant only has one operational reactor, Unit 1, after the accident damaged Unit 2.

Exelon, the parent company of Constellation Energy at the time, shut down the operational reactor in 2019, citing financial losses and Pennsylvania politicians' refusal to provide subsidies to maintain it.

The proposal to restart the reactor coincides with a sort of nuclear power renaissance, as decision-makers increasingly rely on it to support the country's electricity supply, mitigate the worst consequences of climate change, and satisfy the growing demand for electricity brought on by data centers.