Three Mile Island owner seeks $1.6 billion federal loan to restart nuclear plant for Microsoft AI facility (www.phillyvoice.com)
from ArtikBanana@lemmy.dbzer0.com to technology@lemmy.world on 04 Oct 2024 16:35
https://lemmy.dbzer0.com/post/29010662

#technology

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BertramDitore@lemm.ee on 04 Oct 2024 16:40 next collapse

As of October 2024 Microsoft has a market cap of $3.109 Trillion. (Source). So uh, fuck that.

Brokkr@lemmy.world on 04 Oct 2024 16:48 next collapse

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.

Repelle@lemmy.world on 04 Oct 2024 17:46 collapse

You’re right that it doesn’t mean cash on hand, but it does indicate they could liquidate some of that or borrow against it themselves.

sentient_loom@sh.itjust.works on 04 Oct 2024 17:50 collapse

Yeah Microsoft should take the risk here, not American citizens.

BertramDitore@lemm.ee on 04 Oct 2024 18:24 collapse

Bingo. They should invest in their own company, they have the money. There’s no reason for taxpayers to play any part in this.

sunzu2@thebrainbin.org on 04 Oct 2024 19:19 collapse

Why when they can get stupid peasants to pay for it?

homesweethomeMrL@lemmy.world on 04 Oct 2024 21:02 collapse

There’s the actual reason.

sunzu2@thebrainbin.org on 04 Oct 2024 21:08 collapse

If people quit larping propaganda and followed the dollar from it being earned into their pocket to going back into the employer's pocket... it would a different society.

Fiivemacs@lemmy.ca on 04 Oct 2024 16:48 next collapse

Agreed, but they will still get it regardless but get fucked if you want healthcare.

ColeSloth@discuss.tchncs.de on 04 Oct 2024 22:37 collapse

Yeah. My instant thought was “get the loan from Microsoft”

MushuChupacabra@lemmy.world on 04 Oct 2024 16:49 next collapse

Just get Microsoft to pay for all of it if they want it so badly.

tal@lemmy.today on 04 Oct 2024 16:52 next collapse

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.

AngryCommieKender@lemmy.world on 04 Oct 2024 19:35 next collapse

Happy Cakeday! 🍰🎂

tal@lemmy.today on 04 Oct 2024 21:32 collapse

Thanks!

ozymandias117@lemmy.world on 05 Oct 2024 00:04 collapse

Microsoft has agreed to purchase all of the power from the reactor over the next 20 year

techcrunch.com/…/microsoft-taps-three-mile-island…

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

yesman@lemmy.world on 04 Oct 2024 17:02 next collapse

OK, the Utility is getting a loan against expected future payments by Microsoft. So, if all goes to plan, MICROSOFT IS PAYING FOR THIS!

reddig33@lemmy.world on 04 Oct 2024 17:19 collapse

If Microsoft is paying for it, why do they need a loan?

Will Microsoft also be paying for any nuclear waste disposal?

sunzu2@thebrainbin.org on 04 Oct 2024 19:17 collapse

To ask is to answer...

Deny corpo parasite state aid!

TimLovesTech@badatbeing.social on 04 Oct 2024 17:40 next collapse

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.

sentient_loom@sh.itjust.works on 04 Oct 2024 17:49 next collapse

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…

peopleproblems@lemmy.world on 04 Oct 2024 18:41 next collapse

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.

SendMePhotos@lemmy.world on 04 Oct 2024 21:18 collapse

It’s a taxpayer loan, so they pay it back, right?

Crashumbc@lemmy.world on 05 Oct 2024 00:52 next collapse

Until the loan is forgiven a few later…

SendMePhotos@lemmy.world on 05 Oct 2024 01:09 collapse

Oh so it’s like a PPP loan that Republicans will take out and have forgiven and then complain about student loan debt forgiveness.

mtpender@lemmy.world on 05 Oct 2024 02:43 next collapse

[Smiling Anakin]

Jarix@lemmy.world on 05 Oct 2024 03:16 collapse

What kind of interest is on that loan?

T00l_shed@lemmy.world on 04 Oct 2024 18:48 next collapse

And there it is. I was complaining about subsiding the risk and privatize the profits.

sunzu2@thebrainbin.org on 04 Oct 2024 19:16 next collapse

Amazing how first headline was about microsbit needing this...

Now owner needs state aid to provide electric for microshit AI

Ain't free market capitalism great, wage slaves

U pay for everything

T00l_shed@lemmy.world on 04 Oct 2024 20:24 collapse

It makes me irate. However it’s not free market capitalism. This is corporate welfare.

sunzu2@thebrainbin.org on 04 Oct 2024 20:27 collapse

indeed but i like to get a rise out of Corpo Democrats (bootlickers) and right wingers (which we really don't get around here much)

sunbeam60@lemmy.one on 04 Oct 2024 22:37 collapse

They are seeking a LOAN.

T00l_shed@lemmy.world on 05 Oct 2024 00:08 next collapse

They don’t need a LOAN, they can pay out of POCKET. Also if it DEFAULTS the TAX PAYERS will end up footing the BILL. How much MONEY will MS make off of this? Will they take care of clean up if something bad happens? If it’s a federal loan who provides the money off the bat?

sunbeam60@lemmy.one on 05 Oct 2024 09:12 collapse

Microsoft may not have that cash at that jurisdiction; any big company with tonnes of cash still often take out loans because it’s cheaper to pay it back that move cash from one jurisdiction than another. If the nuclear power company defaults and Microsoft backs the loan, I’m still guessing Microsoft pays back the loan.

What do you mean when you ask “how much money will Microsoft make out of this?” If they’re taking a risk, in the way our economy is currently organised, they stand to lose and they stand to gain. You do realise most nuclear power stations were state guaranteed private companies right? Are you against the nuclear industry, the way we organise our economy, or Microsoft’s actions specifically?

The risk of nuclear is tiny, but real. That’s the way with all nuclear companies. Why should who runs the plant influence the form in which we support any clean up required if the most terrible thing happens (ps: It won’t, but that’s another matter and one I’m sure you’ll want to debate endlessly about too)?

T00l_shed@lemmy.world on 05 Oct 2024 12:19 collapse

No I won’t endlessly debate with you, because it’s not a debate. You don’t appear to have issue with this, while I do. You will not change my mind, and I won’t change yours.

umami_wasbi@lemmy.ml on 05 Oct 2024 00:27 collapse

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.

TheMightyCanuck@sh.itjust.works on 04 Oct 2024 19:28 next collapse

Yay more nuclear power for a grid in need.

Boo that it’s hoping federal funds pay for Microsofts powersuck of an AI

pearsaltchocolatebar@discuss.online on 04 Oct 2024 19:43 collapse

The grid isn’t getting the power. It’s all for Microsoft.

TheMightyCanuck@sh.itjust.works on 04 Oct 2024 19:51 next collapse

Oh even worse. What the actual fuck

sunzu2@thebrainbin.org on 04 Oct 2024 20:41 next collapse

That's today's America, boy

MutilationWave@lemmy.world on 04 Oct 2024 23:46 collapse

I’m not happy about it either but they’re going to build the thing no matter what, at least there’s more nuclear power moving forward.

Serinus@lemmy.world on 04 Oct 2024 22:20 collapse

Well, it’ll be putting stain on the grid, more than likely.

pearsaltchocolatebar@discuss.online on 06 Oct 2024 03:39 collapse

How?

Gammelfisch@lemmy.world on 04 Oct 2024 21:49 next collapse

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.

BodePlotHole@lemmy.world on 04 Oct 2024 21:59 next collapse

Maybe Micro$oft should pull themselves up by their bootstraps and cut back on the avocado toast…Cunts.

chaospatterns@lemmy.world on 04 Oct 2024 22:49 next collapse

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.

MaggiWuerze@feddit.org on 05 Oct 2024 03:15 collapse

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 do

FTFY

chaospatterns@lemmy.world on 05 Oct 2024 05:32 collapse

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.

RememberTheApollo_@lemmy.world on 04 Oct 2024 23:07 next collapse

I’m sure the taxpayers will never be on the hook for that loan.

ivanafterall@lemmy.world on 05 Oct 2024 03:31 collapse

But the job creation!

Ensign_Crab@lemmy.world on 05 Oct 2024 03:29 next collapse

Ages ago, I read a book called N.U.K.E.E.

I don’t remember all the specifics, but this seems hauntingly familiar.

yessikg@lemmy.blahaj.zone on 05 Oct 2024 15:11 next collapse

How about we give the power company those 1.6 billion to build wind and solar instead? They are much faster to deploy

mindaika@lemmy.dbzer0.com on 05 Oct 2024 15:45 next collapse

Neat. So is Microsoft going to make that loan in cash or…?

KingThrillgore@lemmy.ml on 05 Oct 2024 16:32 next collapse

Ah there’s the squeeze

Rentlar@lemmy.ca on 05 Oct 2024 16:56 next collapse

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!

TriflingToad@lemmy.world on 05 Oct 2024 20:10 collapse

They don’t need it.

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