Three Mile Island owner seeks $1.6 billion federal loan to restart nuclear plant for Microsoft AI facility
Three Mile Island owner seeks $1.6 billion federal loan to restart nuclear plant for Microsoft AI facility
Constellation Energy hopes to restart a reactor by 2028 as part of a 20-year agreement with the tech company.
Any notion that taxpayers are taking on risk here is fanciful given that any loan will be backstopped by Constellation's entire $80-billion-plus value.
Not to worry taxpayers, despite us paying out dividends to equity holders, our $70 billion plus value means this loan is still safe and sound!
Don't worry taxpayers about us spinning off 90% of our assets to Galaxy Brain Energy, a totally independent and different energy company that we didn't just pull out of our ass. The loan is still backed by our $7 billion plus value, trust!
Neat. So is Microsoft going to make that loan in cash or…?
How about we give the power company those 1.6 billion to build wind and solar instead? They are much faster to deploy
Ah there's the squeeze
No, see that is explicitly not what I agreed with before.
Microsoft buys the plant and Microsoft pays start and maintenance cost.
If it will privately benefit Microsoft they can privately fund it.
Maybe Micro$oft should pull themselves up by their bootstraps and cut back on the avocado toast....Cunts.
As of October 2024 Microsoft has a market cap of $3.109 Trillion. (Source). So uh, fuck that.
Market cap doesn't say how much cash they have available. For that, look at cash on hand which publicaly traded companies need to report
MS has about 75B cash on hand, so they could afford this themselves. They will probably argue that it will bring jobs and expertise to the state.
Also, it's a loan, so the interest will generate funding for the state as well.nevermind, not a loan from the state, so no interest would go to the state.Agreed, but they will still get it regardless but get fucked if you want healthcare.
Yeah. My instant thought was "get the loan from Microsoft"
I’m sure the taxpayers will never be on the hook for that loan.
But the job creation!
And there it is. I was complaining about subsiding the risk and privatize the profits.
They are seeking a LOAN.
Think what happen M$ decided to scrap the new data center, or straight up not buying power from the plant? What if the plant can't make a profit? Who is going to pay when it defaults? What if there's a slip up and end up the next Chernobyl? Of course, it's taxpayer who pay all.
Just get Microsoft to pay for all of it if they want it so badly.
Ok, so a business loan, no big deal. Oh .... what's this?
If Constellation received a federal loan guarantee, much of the risk attached to the project would be shifted to taxpayers in the event of a default. It also would reduce the borrowing costs needed to finance to the restart. The project still needs to obtain regulatory approvals to move forward and would require intensive safety oversight during and after the restart.
Well that doesn't sound good, I would like some reassurance. Constellation, what say you?
"Rest assured that to the extent we may seek a loan, Constellation will guarantee full repayment," the company's statement said. "Any notion that taxpayers are taking on risk here is fanciful given that any loan will be backstopped by Constellation's entire $80-billion-plus value."
Ah good. A company that for sure is going to hold to its word and not shaft the state or tax payers. Great!
Due to the age of the plant, some experts have cautioned that the project may require significant investments in refurbishments and maintenance beyond the period of the restart.
"The $1.6 billion is just the start," Mark Jacobson, a professor of civil and environmental engineering at Stanford University, told the New Republic. "Microsoft will be asking for government handouts just like most all other aged nuclear reactor owners have asked in multiple states."
Super, a for profit company worth 3.11 trillion USD (as of 1:25pm EDT) that just needs government handouts for it's business based on choices it has made to further its own worth. That sounds great, I'm sure taxpayers will get a return on that investment right? Right??
In September, Pennsylvania Gov. Josh Shapiro touted thousands of energy jobs that will be created by Constellation's plans at Three Mile Island. Constellation, which plans to rename the facility the Crane Clean Energy Center, has claimed it will generate about $3 billion in state and federal tax revenue.
OK, so $3 billion minus $1.6 billion equals $1.4 billion, minus whatever Microsoft gets as a handout (likely equal to or more than $1.6 billion) equals potential negative billions? Yay capitalism! I'm so happy that the US is willing to help small businesses like this.
Watch the Netflix documentary about the Three Mile Island accident. Yeah, fuck that shit and keep it shutdown until maximizing profits becomes a lower priority than safety.
So let Microsoft pay to restart it.
I guess it the government gives them the loan then the gov't gets interest payments, which must help inflation over time. Assuming that they make those payments...
Ages ago, I read a book called N.U.K.E.E.
I don't remember all the specifics, but this seems hauntingly familiar.
OK, the Utility is getting a loan against expected future payments by Microsoft. So, if all goes to plan, MICROSOFT IS PAYING FOR THIS!
If Microsoft is paying for it, why do they need a loan?
Will Microsoft also be paying for any nuclear waste disposal?
To ask is to answer...
Deny corpo parasite state aid!
considers
If it gets a federal subsidy, that subsidy is going to really primarily benefit Pennsylvania, yes?
I mean, yes, power from it maybe -- if Microsoft isn't schlorping all of it up -- help support the grid in the region a bit. But if Microsoft's building a datacenter in Pennsylvania and this is subsidizing a nuclear power plant in Pennsylvania, the benefit's really principally going to Pennsylvania alone, other than in the limited sense that it reduces carbon dioxide emissions.
California or Nevada, say, isn't going to benefit from that either way.
Like, if there's some sort of federal subsidy accessible to any state that wants to do nuclear power build-out and that this is just how Pennsylvania chooses to make use of it, that might be one thing.
Microsoft has agreed to purchase all of the power from the reactor over the next 20 year
The original reporting sounded decent - Microsoft was spinning up a decommissioned reactor, everyone wins
This new reporting of they can't afford it makes it seem like a bad idea in its entirety
Happy Cakeday! 🍰🎂
Thanks!
While I'm not a fan of the loan nor the massive waste of power most LLMs are, I actually think that's its a good thing because if Microsoft can break through some of the excessive red tape on nuclear plants then they'll bring this online and hopefully prove that nuclear power can be safe and a good source of large amounts of power, when the huge demand for AI dies down, then maybe they'll keep the plant around and provide power to the grid.
when the huge demand for AI dies down, then
maybe they'll keep the plant around and provide power to the grid.they'll abandon it to cut costs leaving the government to mop up after them as they always doFTFY
I have my doubts that a company would be able to just abandon a live and operational nuclear power plant. I'm no nuclear or power engineer, but I am familiar with data center power consumption. There are companies in the region that would absolutely build more data centers, but are power constrained from the utility companies in the area, that are not just for AI, but for general compute. Even then, it's low carbon production energy. If you have a ton of excess power, just start forcing high carbon production facilities in the area to close and now you've greened the grid.
