Constellation Energy plans to restart the Three Mile Island nuclear plant and will sell the power to Microsoft, demonstrating the immense energy needs of the tech sector as they build out data centers to support artificial intelligence.

Constellation expects the Unit 1 reactor at Three Mile Island near Middletown, Pennsylvania, to come back online in 2028, subject to approval by the Nuclear Regulatory Commission, the company announced Friday. Constellation also plans to apply to extend the plant’s operations to at least 2054.

Constellation stock jumped about 15% in trading. Shares have more than doubled year to date.

Microsoft will purchase electricity from the plant in a 20-year agreement to match the energy its data centers consume with carbon-free power. Constellation described the agreement with Microsoft as the largest power purchase agreement that the nuclear plant operator has ever signed.

“The decision here is the most powerful symbol of the rebirth of nuclear power as a clean and reliable energy resource,” Constellation CEO Joe Dominguez told investors on a call Friday morning.

Unit 1 ceased operations in 2019 as nuclear power struggled struggled to compete economically with cheap natural gas and renewables. It is separate from the reactor that partially melted down in 1979 in the worst nuclear accident in U.S. history.

Constellation will rename the plant the Crane Clean Energy Center. The plant is named after Chris Crane, who was CEO of Constellation’s former parent company and passed away in April.

Constellation will invest $1.6 billion in restarting the plant through 2028, including on nuclear fuel, Chief Financial Officer Dan Eggers told investors during the call.

Electricity demand from data centers is expected to surge in the coming decades as the tech sector ramps up AI, threatening to strain the electric grid. While estimates vary, Goldman Sachs has forecast data centers will consume 8% of total U.S. electricity demand by 2030, compared with 3% currently.

Power demand is also surging from the expansion of domestic manufacturing and the adoption of electric vehicles. Rystad Energy has forecast that data center and electric vehicles alone will add 290 terawatt hours of electricity demand by the end of the decade, equivalent to the entire consumption of the nation of Turkey.

Tech companies are hunting for nuclear power to meet that growing electricity demand while adhering to their climate goals. In March, Amazon Web Services bought a data center campus from Talen Energy that will be powered by the Susquehanna nuclear plant, also in Pennsylvania, in a first-of-its-kind deal. Oracle recently said it is designing a data center that will be powered by three small nuclear reactors.

There is growing bipartisan support from the federal and state governments to revive the nuclear industry after a decade-long wave of reactor shutdowns.

Three Mile Island would be the second nuclear plant to restart operations in U.S. history. The Palisades nuclear plant in Michigan would be the first, with that plant expected to return to service at the end of 2025.

Constellation anticipates that the NRC will complete the review of Three Mile Island in 2027, Eggers said. The review includes a safety and environmental impact study.

“Based on our expertise on plant licensing and regulatory processes and through observation of the Palisades restart, we are highly confident we’ll be able to restore the plant’s operational licensing authority to the same state that existed prior to the shutdown in 2019,” Eggers said.

The nation’s largest grid operator, PJM Interconnection, will also have to review Three Mile Island’s impact on the grid before the nuclear plant can restart, Eggers said. Constellation plans to submit a grid interconnection request to PJM next year, the executive said.

Eggers said the plant could potentially restart earlier than expected if PJM embraces changes that speed up interconnection requests to address tightening power supplies in the 13-state, primarily Mid-Atlantic region that the grid operator serves.

“In this rebirth, we see the most powerful sign that America will turn to the enduring promise of nuclear energy, an old and loyal ally that is renewed and ready to light the way forward,” Dominguez said.

Oracle shares rose about 6% in extended trading on Thursday after the database software maker raised its fiscal 2026 revenue guidance and issued a heady forecast for the 2029 fiscal year.

At an analyst meeting coinciding with the Oracle CloudWorld conference in Las Vegas, the company said it now sees at least $66 billion in fiscal 2026 revenue. Analysts surveyed by LSEG were anticipating $64.5 billion.

Oracle’s good week is continuing. Shares gained around 15% the past three trading sessions and are trading at a record after the company announced quarterly results that topped expectations. The stock is now up 55% for the year, behind only Nvidia among large-cap tech companies.

Oracle sometimes also gives guidance multiple years out. The company said on Thursday that, looking out to the 2029 fiscal year, it sees over $104 billion in revenue, along with year-over-year growth in earnings per share of 20%.

“Those numbers should not be a problem. At all,” CEO Safra Catz said at the event. She pointed to partnerships that will allow companies to use Oracle database software through top-tier cloud providers Amazon, Google and Microsoft. Oracle announced the Amazon relationship on Monday.

The company’s cloud infrastructure revenue grew 45% in the most recent quarter, a quicker pace than at Amazon, Google or Microsoft.

In addition to generating more revenue as companies move workloads to the cloud from their data centers, Oracle has a shot at growing in artificial intelligence. On Wednesday, Oracle said its cloud unit that competes has begun taking orders for a cluster of over 131,000 next-generation “Blackwell” graphics processing units from Nvidia.

As Oracle plans to expand revenue, Catz said she expects capital expenditures to double in the current 2025 fiscal year.

WATCH: Investors starting to look ‘longer term’ on Oracle, says Wolfe’s Alex Zukin

It’s been a topsy-turvy stock market since the Club’s August Monthly Meeting. 

Oracle shares rose 13% Tuesday and are on pace to close at a record after the database software vendor reported fiscal first-quarter results that topped Wall Street estimates.

Here is how the company did compared to LSEG consensus:

• Earnings per share: $1.39 adjusted vs. $1.32 expected
• Revenue: $13.31 billion vs. $13.23 billion expected

Oracle’s revenue increased 8% from $12.45 billion a year ago, according to a statement. Net income rose to $2.93 billion, or $1.03 per share, from $2.42 billion, or 86 cents per share, in the same quarter a year ago.

The stock’s highest close to date was $145.03 in July. Prior to the report, Oracle was up about 34% so far this year, compared to the S&P 500’s 15% gain.

For the current quarter, Oracle expects revenue growth of 8 to 10%, CEO Safra Catz said on the earnings call. Analysts were expecting growth of close to 9%, according to LSEG. The company sees adjusted earnings per share for the fiscal second quarter of 1.45 to $1.49. Analysts were looking for earnings of $1.47 per share.

The company said its cloud services and license support business generated $10.52 billion in revenue. That was up 10% from a year earlier and higher than the StreetAccount consensus of $10.47 billion.

Oracle’s cloud and on-premises license segment had $870 million in revenue, up 7%, and more than StreetAccount’s $757.6 billion consensus.

Revenue from cloud infrastructure came to $2.2 billion, up 45%. That is an acceleration from the previous quarter, during which revenue went up 42%.

“I will say that demand is still outstripping supply. But I can live with that,” Catz said on the call.

Oracle is currently designing a data center that will use over a gigawatt of power, and it will rely on three modular nuclear reactors, Larry Ellison, Oracle’s co-founder, chairman and chief technology officer, said on the call.

Over time, Oracle might operate 2,000 data centers, up from 162 today, Ellison said. But not all of them require massive amounts of power.

“The smallest are about 150 kilowatts,” Ellison said. “And we’re going to get down to 50 kilowatts.”

During the quarter, Oracle announced the opening of a second cloud region in Saudi Arabia and said its database software will be available through Google’s public cloud.

In a separate statement on Monday, Oracle said it would partner with cloud infrastructure market leader Amazon Web Services to enable its database services on dedicated hardware.