Google Strikes First-Ever Deal to Buy Fusion Power

Alphabet’s Google has signed a landmark deal to purchase electricity from a fusion energy project, the first of its kind globally.

The agreement signals growing confidence in fusion energy as a potential game-changer for the world’s power needs.

Google will buy 200 megawatts of electricity from the ARC project, developed by Commonwealth Fusion Systems (CFS).

The ARC plant, based in Virginia, is designed for a total capacity of 400 megawatts.

CFS, which spun out of MIT in 2018, is racing to deliver the first grid-ready fusion energy by the early 2030s.

“Yes, there are some serious physics and engineering challenges… but that’s something that we want to be investing in now,” said Michael Terrell, Google’s head of advanced energy.

Why Fusion Matters for the Planet and for Google

Fusion energy mimics the process that powers the sun — forcing light atoms together to release enormous amounts of clean energy.

Unlike nuclear fission, it produces little radioactive waste and carries no meltdown risks.

“Without partnership and without being bold and setting a goal… you won’t ever reach over those challenges,” said CFS co-founder and CEO Bob Mumgaard.

Virginia is home to the world’s largest concentration of data centres, many of which are used for artificial intelligence.

Google’s expanding energy demand makes investment in future-proof, sustainable power sources like fusion both urgent and strategic.

The ARC project will serve as a testbed during fusion’s trial phase, offering insight into performance, reliability, and scalability.

Fusion Not Yet Ready — But the Race Is On

Although a U.S. lab briefly achieved a net energy gain in 2022, commercial fusion remains elusive.

To be viable, fusion plants must achieve “engineering break-even,” producing more energy than they consume — and must do so continuously.

CFS believes the ARC plant will reach that goal within the next decade.

Alongside the power deal, Google is increasing its financial investment in CFS.

Though the company didn’t share how much more it’s investing, it had earlier backed a $1.8 billion round for CFS in 2021.

According to Mumgaard, their current fundraising efforts match that previous round in size.

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