The Trump administration announced on Tuesday that it has extended a $1 billion loan to Constellation Energy Corp to restart its nuclear reactor at the Pennsylvania plant formerly known as Three Mile Island. The funding marks a major step in revitalizing one of the country’s most iconic nuclear sites, which shut down in 2019 after decades of operation.

Constellation signed a separate agreement in late 2024 with Microsoft to supply electricity from the 835-megawatt reactor once it comes online. The energy will offset Microsoft’s data center power use, reflecting growing interest from tech companies in reliable, carbon-free energy sources. The plant’s second unit, renamed the Crane Clean Energy Center, has remained offline since a 1979 accident that had long chilled U.S. nuclear investment.

Rising Demand for Stable Power

U.S. power demand is climbing for the first time in twenty years, driven by emerging technologies including artificial intelligence and cloud computing. Nuclear energy offers large-scale, stable, and low-carbon electricity, making it increasingly attractive for companies and utilities seeking both sustainability and uninterrupted power.

Greg Beard, head of the Energy Department’s Loan Programs Office, said the restart would bolster the PJM regional grid, which covers 13 states and the District of Columbia. “This type of energy is essential because it provides large, stable, and affordable base load power,” Beard said. He emphasized that the loan would help Constellation lower financing costs while attracting private investment to accelerate the project.

The Loan Programs Office manages over $250 billion in capital, with a significant portion now directed toward rejuvenating U.S. nuclear reactor development. Energy Secretary Chris Wright has highlighted nuclear projects as a primary focus for the department’s funding this year.

Project Progress and Safety

Constellation has advanced the timeline for restarting the reactor to 2027, following an expedited review by PJM to connect the plant to the grid. The company has already hired hundreds of workers, completed infrastructure inspections, and ordered key equipment. Upcoming work includes revamping cooling towers, installing a main power transformer, and refueling the reactor before electricity production can begin.

The $1 billion loan represents the first instance in which the Loan Programs Office simultaneously met all lending conditions and closed a deal, according to Beard. Constellation is guaranteeing the loan, which provides taxpayers protection should the project encounter delays or challenges. Despite being an investment-grade operator capable of securing bank financing, the government backing signals support for affordable, reliable, and secure domestic energy, as directed by President Trump.

The project will still require approval from the U.S. Nuclear Regulatory Commission and water-related permits, which are currently in process. Once operational, the reactor is expected to make a significant contribution to both regional energy security and the nation’s broader push toward low-carbon electricity generation.