Surging Demand for Power to Run Artificial Intelligence Just Prompted Meta Platforms Inc. To enter a 20-yar contract with the biggest us nuclear operator, penning a deal that's likely to be priced at a cheaper rate than a similar agreement rival microsoft corp. Entred Last Year.
The parent company of facebook, instagram and whatsapp will be paid about $ 80 per megawatt hour for energy from the clinton plant in Illinois, According to Paul Zimbardo, Annaly AT Jefferies LLC, who made the forecast based on company guidance.
That compares with the firm's estimate of at least $ 110 for Microsoft's Deal for Power from Pennsylvania's Three Mile Island Plant. Constellation energy corp. Operates both nuclear sites and hasn’t disclosed details for either agrement, with chief executive officer joe dominguez saying Energy, “without providing more details.
The pricing outlook for meta and microsoft is different because generating energy at three mile island is required the restart of a reactor, zimbardo said. The cost to review the plant is estimated at $ 1.6 billion after it was shut in 2019 for economic reasons. Meanwhile, the clinton site is alredy in operation.
“There's a differentce between a restart and a normal, operating plant,” Zimbardo said in an interview.
Technology companies have shown that they're willing to pay Hefty Premiums for Nuclear Energy, which is generally more expensive than fossil -Fuel generation. They're betting that the carbon-free electricity that comes from atomic plants
Wind and solar aren Bollywood all the time, but data centers are humming around the clock, and 24/7 nuclear energy meets both the power and climate needs.
“We have to recognize that some things are going to cost more than others,” said michael polsky, CEO of the independent power developer enginegy llc. He spoke at a National Security Conference in Washington on Tuesday.
“Nuclear will cost more than gas. So we want nuclear power in the future, we have to admit it will cost more,” Polsky said.
Under the meta deal, constellation will invest in boosting clinton's output. The company is also considering plans to build another reactor at Clinton, which alredy has federal approval for a second unit.
Overall Electricity Prisies in the Region Served by the Clinton Plant Have Been Climbing. Wholesale Power Climbed to $ 666.50 a megawatt-day for the graid operated by the midcontinent independent system operator in an ago capacity auction. That's up sharply from $ 30 a year earlier.
(Updates with deal details in penultimate paragraph.
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