The U.S. Department of Energy closed a $1 billion loan to Constellation Energy on November 18, 2025, to fund the refurbishment and restart of the Crane Clean Energy Center, the company’s former Three Mile Island Unit 1 nuclear reactor. The loan, issued through the DOE’s Loan Programs Office, covers a large portion of the estimated $1.6 billion cost to bring the 835 MW plant back online by 2027.
The Crane plant, located in Pennsylvania, will be the largest nuclear facility in the United States to be restarted in the 21st century. Constellation estimates that the refurbishment will require $1.6 billion in capital outlays, with the DOE loan covering roughly 62 % of the total. The plant’s 835 MW capacity will add a steady, carbon‑free supply of power to the PJM interconnection and is expected to be fully operational by the end of 2027.
Microsoft’s 20‑year power purchase agreement applies exclusively to the Crane Clean Energy Center. Constellation also holds a separate, long‑term PPA with Meta for the Clinton Clean Energy Center, a 1.1‑GW facility that will continue to supply power to Meta’s data‑center operations. The distinction is important because the Microsoft deal provides the revenue certainty that underpins the loan’s feasibility, while the Meta agreement demonstrates Constellation’s broader strategy of securing long‑term contracts for its nuclear fleet.
The loan represents a significant federal endorsement of nuclear power as a reliable, low‑carbon source of electricity for the growing data‑center sector. Constellation’s CEO, Joe Dominguez, said the DOE’s support “is another huge step toward bringing hundreds of megawatts of reliable nuclear power onto the grid at this critical moment.” Secretary of Energy Chris Wright echoed that sentiment, noting the loan “is part of the United States’ unprecedented steps to lower energy costs and bring about the next American nuclear renaissance.”
The financing is expected to lower Constellation’s cost of capital for the refurbishment, thereby reducing the long‑term cost of electricity for the 835 MW plant. The 20‑year Microsoft PPA guarantees a stable revenue stream that aligns with the company’s strategy of leveraging nuclear assets to meet the high‑energy demands of AI‑driven data‑center operations. The loan also signals continued federal support for nuclear projects that can help the U.S. maintain energy security and compete in the global AI race.
The announcement follows a period of investor enthusiasm that began with the signing of the Microsoft PPA in September 2024, which had previously lifted Constellation’s market perception of its nuclear portfolio. While the loan itself does not alter the company’s earnings outlook, it reinforces confidence in the viability of the Crane restart and the broader nuclear strategy.
The project is projected to create jobs in Pennsylvania and contribute to the local economy, while the addition of 835 MW of carbon‑free power will help the region meet its renewable energy targets and support the reliability of the national grid.
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