A major US electric power company plans to resume operations at the Three Mile Island nuclear plant to supply power to tech giant Microsoft for 20 years.

Constellation Energy announced on Friday that it will restart the Unit 1 reactor at the Three Mile Island plant in the eastern state of Pennsylvania. The firm says the reactor will help power Microsoft's data centers that process data for artificial intelligence.

The utility says it will spend 1.6 billion dollars to restore facilities at the Unit 1 reactor, which it shut down in 2019 due to worsening profitability. Constellation plans to bring the reactor back online in 2028 after obtaining approval from nuclear power authorities.

In 1979, a meltdown occurred at the Unit 2 reactor at the Three Mile Island plant.

Radioactive substances leaked from the plant, resulting in the most serious nuclear accident in US history and the closure of the reactor. Unit 2 is not included in the restart plan.

IT firms have been looking to renewable energy sources to meet surging demand for power at their AI data centers.

The Wall Street Journal says, "The plan signals the gargantuan amount of power needed for data centers for AI, along with the tech industry's thirst for a carbon-free, round-the-clock electricity source needed to meet climate goals."