The Department of Energy is weighing a $1.6 billion loan guarantee for a plan to reopen the Three Mile Island nuclear plant with Microsoft as its sole customer.

The amount of energy being consumed by AI is well-documented, which is why many companies in the industry are looking toward nuclear power as a solution.

Constellation Energy, the utility company that owns Pennsylvania's Three Mile Island nuclear plant, is expected to seek a $1.6 billion federal loan guarantee for its project to restart a reactor that would provide power to Microsoft for a new artificial intelligence data center.

Constellation Energy and Microsoft said on Friday that they had inked a power agreement to assist in the first-ever restart of a section of the nuclear facility at Three Mile Island in Pennsylvania. TakeAway Points: Constellation Energy and Microsoft have inked a power agreement to assist in the first-ever restart of a section of the

Constellation Energy is looking to secure $1.6 billion in federal funding from the Biden administration to restart the Three Mile Island nuclear plant.

Constellation Energy (NASDAQ:CEG) is pursuing a $1.6B federal loan guarantee to help finance its plan to restart the Three Mile Island nuclear plant and sell the electricity to Microsoft to power data centers,