Three Mile Island restart project gets a $1 billion federal loan

by Ian Karbal, Pennsylvania Capital-Star
November 19, 2025

This story was updated on Nov. 19, 2025 at 3:53 p.m. to clarify a description of the 1979 accident at Three Mile Island.

The federal Department of Energy closed a $1 billion loan to finance the restart of a nuclear reactor at the former Three Mile Island plant, where energy will be produced to power Microsoft data centers in PJM’s transmission region.

Mark Rodgers, a spokesperson for Constellation, told the Capital-Star that the federal loan is welcome, and will help reduce overall borrowing costs for the project. He added that the reactor will be a strong source of clean energy, which will offset the added demand on the power grid created by data centers.

“We’re appreciative of [the loan],” Rodgers said. “It’ll be helpful to Constellation. And for the government, we’re going to pay it back in full with interest, so ultimately the taxpayer will get a return.”

Every morning get our top stories right in your inbox. Subscribe to the Pennsylvania Capital-Star’s Morning Guide now.

SUBSCRIBE

Three Mile Island was the site of the worst nuclear power disaster in U.S. history, when one of its two reactors partially melted down in 1979, releasing some radioactive material into the surrounding environment. While long-term impacts on the health of people living nearby were minimal, the accident became a symbol for the risks of nuclear energy production in the U.S.

The other on-site reactor, which shuttered in 2019, is what will be brought back online by Constellation Energy. It’s being renamed the Crane Clean Energy Center.

“Constellation’s restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region,” U.S. Energy Secretary Chris Wright said in a press release. “It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.”

The taxpayer-backed loan is financed through the Trump administration’s Energy Dominance Financing Program, which will back projects aimed at boosting energy infrastructure capacity for the U.S. Artificial Intelligence industry.

Listen to the audio recap: 

https://penncapital-star.com/wp-content/uploads/2025/11/19ikTMI1.mp3

 

The project, however, has faced some pushback from community members who live near the reactor, some of whom lived through the 1979 incident.

At a public hearing on the reopening in July, a number of people voiced concerns about the risks of another meltdown being shouldered by Middletown and the surrounding communities in Dauphin County, while virtually all of the energy created will go towards powering data centers.

Others spoke in support of the project, with many welcoming the construction jobs it will bring and the potential positive impacts on the local economy.

The reactor is expected to be operational in 2027.

Support the Pennsylvania Capital-Star’s End of the Year fundraising campaign.

Thank you for reading Ian’s story.

We’re working our way toward our goal of $5,000 by the end of the year to power our efforts to break down how policy decisions in Harrisburg and Washington D.C. impact you and your community.

The campaign has already raised more than$1,500 in a little more than three days, thanks to you.

Can you chip in now with a one-time gift of $25, $50, or $100? How about  a monthly contribution of $10, $20 or $50? Any donation is tax deductible.

Thank you for supporting the Capital-Star.

SUPPORT

Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Tim Lambert for questions: info@penncapital-star.com.