Constellation Energy (NASDAQ: CEG) plans to ask U.S. regulators to speed up grid access for its Three Mile Island restart, as it targets operations by 2027.
Originally reported by Reuters on Friday, the company aims to reconnect a reactor at the shuttered Pennsylvania site to supply electricity for data centres operated by Microsoft (NASDAQ: MSFT). However, early feedback from grid operator PJM Interconnection suggests the plant may not connect until 2031.
Consequently, the potential delay has raised concerns about timing and project viability. Shares of Constellation fell about 8 per cent to roughly USD$275 following the update.
The restart project carries a price tag of approximately USD$1.6 billion. Additionally, the company intends to rename the facility the Crane Clean Energy Center once operations resume.
Chief executive Joseph Dominguez said the company still expects to meet its 2027 target. However, he acknowledged ongoing discussions with PJM and transmission partners to resolve connection challenges.
The plant originally shut down in 2019 after more than 40 years of operation. Meanwhile, a separate reactor at the site, linked to a historic partial meltdown, will remain permanently closed.
Constellation plans to request permission from the Federal Energy Regulatory Commission to transfer transmission rights from its Eddystone gas plant. Consequently, this move could help accelerate grid integration for the nuclear site.
The broader energy market has shifted rapidly due to artificial intelligence demand. Additionally, U.S. power producers have seen share prices more than double over two years as Big Tech expands data centre capacity.
Technology companies are expected to spend about USD$600 billion on data centre infrastructure in 2026 alone. However, that surge has strained electricity supply across key regions.
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New agreements may take longer
PJM has warned that demand could exceed supply as early as next year. Meanwhile, rising electricity costs have triggered opposition from communities affected by new data centre projects. In response, the White House recently convened major tech firms including Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN) and Meta (NASDAQ: META). Additionally, companies pledged to contribute more toward grid infrastructure costs.
Constellation said those commitments have forced it to revisit some contract terms with data centre customers. Consequently, new agreements may take longer to finalize as regulatory clarity evolves. The most immediate challenge involves approval from grid operator PJM Interconnection, which manages electricity flow across 13 U.S. states. PJM must study whether the grid can handle the plant’s output. However, the process has slowed significantly due to a backlog of project requests.
Additionally, PJM has indicated the site may not connect to the grid until 2031. Consequently, that timeline conflicts with Constellation’s goal to restart operations by 2027. Transmission infrastructure presents another obstacle. The project may require upgrades to existing power lines or new construction. Meanwhile, regulators must determine who will cover those costs, which can trigger lengthy disputes between utilities, developers and ratepayers.
Constellation also plans to seek approval from the Federal Energy Regulatory Commission to transfer transmission rights from another facility. However, such requests can face delays if stakeholders raise concerns about pricing or access fairness.
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