The U.S. Department of Energy has granted Constellation Energy a $1 billion loan to support the planned restart of the Three Mile Island nuclear reactor in Pennsylvania. The move underscores the strategic push for stable, low-carbon electricity as demand rises from data centers and energy-intensive industries, while also reinforcing domestic nuclear capacity.

Financial Structure and Strategic Support

The loan, provided through the DOE’s Loan Programs Office, is designed to cover refurbishment and operational restart costs for the reactor, which was shut down in 2019 but never fully decommissioned. Once operational and pending regulatory approval, the reactor is expected to generate 835 MW of electricity, offering a reliable source of baseload power.

The funding reduces financing costs for Constellation Energy while signaling broader government support for large-scale nuclear projects. The structure demonstrates the administration’s commitment to facilitating private investment into nuclear infrastructure, positioning the restart as both an economic and strategic initiative.

Market and Policy Implications

A long-term power purchase agreement with major technology companies is expected to underpin the project’s commercial viability, supplying clean energy to high-demand data centers. This aligns with an emerging trend of corporate reliance on nuclear-generated electricity for low-carbon, continuous supply.

The loan also fits into federal policy priorities of strengthening the domestic nuclear industrial base and promoting baseload energy solutions. In addition to energy output, the project is projected to create over 600 jobs during refurbishment and operation, supporting local economies and reinforcing industrial capabilities.

Risks and Operational Considerations

Despite strong backing, the restart carries notable risks. Public perception of nuclear safety remains sensitive given Three Mile Island’s historical incident in 1979, though the current reactor was not involved. Financially, taxpayer exposure through the federal loan raises questions regarding potential cost overruns or delays.

Operational hurdles include securing final Nuclear Regulatory Commission licensing, completing major equipment upgrades, and refueling. Each phase carries technical and regulatory risk that could affect the 2027 restart timeline.

Forward-Looking Outlook

Investors and policymakers will closely monitor the reactor’s progress toward the 2027 restart target, assessing regulatory approvals and construction milestones. Successful implementation could serve as a blueprint for future nuclear projects in the U.S., particularly as demand for low-carbon baseload power grows with AI and data-driven industries. At the same time, cost management, public perception, and regulatory adherence remain key factors that will influence the project’s strategic and economic impact.