Nuclear Revival: Three Mile Island, AI, and Energy Policy

Three Mile Island’s $1 Billion Restart: Nuclear, AI PowerNews summaryThe U.S. Department of Energy is lending Constellation Energy $1 billion to restart the 835 MW nuclear reactor at the former Three Mile Island site in Pennsylvania, now the Crane Clean Energy Center. The plant, shut since 2019, is backed by a 20-year power deal with Microsoft to supply electricity for its AI data centres, with restart targeted around 2027. This is a clear policy signal: Washington is willing to use cheap federal loans to revive existing nuclear capacity to meet growing power demand from AI and data centres. WinnersNuclear utilities and power producersConstellation Energy – $CEGVistra – $VSTWhy they benefit:$CEG gets direct support via the $1 billion loan plus long-term contracted cashflows from Microsoft, de-risking a costly restart. The deal also boosts sentiment for other nuclear-heavy utilities like $VST, as it shows federal money is available to keep reactors running or bring capacity back. Big Tech / AI data-centre operatorsMicrosoft – $MSFTAmazon – $AMZNWhy they benefit:$MSFT locks in firm, carbon-free baseload power for its AI data centres, reducing exposure to future power price spikes. $AMZN and other hyperscalers can copy this playbook, using long-term nuclear or clean-power deals to secure energy for cloud and AI growth. Nuclear tech and servicesBWX Technologies – $BWXTOklo – $OKLOWhy they benefit:A high-profile restart at Three Mile Island supports the broader “nuclear is back” narrative. That can drive more work for component and service suppliers like $BWXT and improve sentiment for advanced reactor developers such as $OKLO as investors look for nuclear exposure. LosersFossil-fuel merchant generatorsNRG Energy – $NRGAES Corporation – $AESWhy they are pressured:An 835 MW baseload nuclear plant adds low-marginal-cost supply into the PJM region, which can chip away at the long-term upside for gas/coal-fired merchants that rely on tight power markets and higher peak prices. US natural gas producers tied to power demandEQT Corporation – $EQTRange Resources – $RRCWhy they are pressured:If more incremental AI-driven demand is met by nuclear and other firm clean power rather than new gas plants, the very long-term growth story for gas burn in the power sector gets slightly weaker at the margin. Coal-heavy, non-nuclear utilitiesAmerican Electric Power – $AEPPPL Corporation – $PPLWhy they are pressured:Policy and capital are clearly pivoting toward low-carbon, firm generation. Utilities with legacy coal portfolios and little nuclear exposure may underperform nuclear-focused peers as more DOE loan support flows into projects like Three Mile Island. #StockMarket #Trading #Investing #DayTrading #SwingTrading #NuclearEnergy #AI #EnergyStocks #Utilities #CleanEnergy

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