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By Rich Rosenstiel, Utilities Client Account Lead
The nuclear power industry is poised for a renaissance as global electricity demand surges, driven by rapid electrification, data center expansion, growth of electric vehicles and the push to decarbonize energy production. Traditional energy sources like coal and natural gas face mounting regulatory and environmental pressures while renewables, despite their growth, struggle with intermittency and storage challenges. Nuclear energy offers a compelling solution: it provides reliable, carbon-free baseload power, operating around the clock regardless of weather conditions. Recent advances in reactor design, including small modular reactors (SMRs), promise safer, more cost-effective deployment options that could reinvigorate investment and public confidence in nuclear power.
Microsoft’s recent agreement to help restart the Three Mile Island Unit 1 nuclear reactor marks a significant shift in how tech companies are addressing their massive energy needs. Under a 20-year power purchase agreement with Constellation Energy, Microsoft will buy the full output of the plant (~835 megawatts) to power its AI-driven data centers in the PJM region. This move supports Microsoft’s goal to match 100% of its electricity consumption with zero-carbon energy sources by 2030 Microsoft Blog The plant, which was shut down in 2019 for economic reasons, is now being revived with a $1.6 billion investment and rebranded as the Crane Clean Energy Center. The project is expected to be operational by 2028 pending regulatory approvals.
This initiative reflects a broader trend among tech giants to invest in nuclear energy as a reliable, carbon-free power source to meet the escalating demands of AI and cloud computing. Companies like Amazon and Oracle are also exploring nuclear options, including small modular reactors (SMRs), to ensure consistent energy supply for their data centers. By securing long-term energy agreements and investing in nuclear infrastructure, these companies aim to stabilize energy costs, enhance grid reliability and meet stringent sustainability goals. As the energy demands of AI technologies continue to rise, partnerships between tech firms and nuclear energy providers are likely to play a crucial role in shaping a sustainable and resilient energy future.
Illinois is rapidly becoming a national hub for data center development, with major investments from companies like Microsoft, Edged Energy, CyrusOne, Compass Datacenters and Prime Data Centers. These firms are targeting strategic locations such as Yorkville, Aurora, Elk Grove Village and Hoffman Estates to build state-of-the-art facilities that support the growing demands of cloud computing, artificial intelligence and digital infrastructure. For instance, Compass Datacenters has initiated the transformation of the former Sears headquarters in Hoffman Estates into a $10 billion hyperscale data center campus, aiming to construct five high-capacity facilities on the nearly 200-acre site. Similarly, Prime Data Centers is developing a $1 billion, 750,000-square-foot campus in Elk Grove Village, which will deliver up to 175 megawatts of capacity across three buildings.
These substantial investments are bolstered by Illinois’ favorable conditions, including tax incentives, robust infrastructure and a cooler climate that aids in energy efficiency. The state’s commitment to renewable energy and grid reliability further enhances its appeal to data center operators. However, the rapid expansion also brings challenges, such as increased electricity and water consumption, prompting state officials to seek a balance between economic growth and environmental sustainability. As Illinois continues to attract data center projects, it positions itself at the forefront of the digital economy while navigating the complexities of resource management and regulatory oversight.
As someone who worked within the ComEd nuclear fleet in the 1990s, I had a front-row seat to one of the most significant operational turnarounds in the history of the U.S. nuclear industry. Prior to the mid-90s, many of the plants faced serious performance and regulatory challenges, with capacity factors lagging and public confidence wavering. But through a relentless focus on operational excellence, rigorous training, leadership accountability and a culture that emphasized safety above all else, the fleet significantly increased its capacity factor. Over the last 25 years, that commitment has not only endured but strengthened under Exelon and now Constellation. Today, these plants are among the highest-performing nuclear facilities in the world, consistently achieving industry-leading capacity factors and maintaining strong regulatory standing. It’s gratifying to see that the seeds planted during those tough, transformative years have flourished into a standard of excellence that continues to power millions of homes reliably and carbon-free.
As the nuclear energy sector experiences a powerful resurgence, SDI Presence is uniquely positioned to support the companies driving this transformation. With decades of experience serving utilities and public-sector clients, SDI delivers trusted IT consulting and managed services that modernize operations while ensuring security, compliance and performance. Our expertise in IT service management, enterprise asset management, cloud infrastructure and workforce enablement ensures your teams can scale with confidence and agility. Partner with SDI to bring resilient, future-ready technology solutions to the forefront of the nuclear renaissance.
