The agreement was made with Commonwealth Fusion Systems (CFS), a startup spun out of the Massachusetts Institute of Technology in 2018 that is working to commercialize fusion—the same energy process that powers the sun and stars. Though still in its experimental stage on Earth, fusion is widely viewed as a potential game-changer in the global energy transition.
The deal covers 200 megawatts of electricity, roughly enough to power a small city. The power will be generated by CFS’s ARC project, a 400 MW fusion plant currently in development in Virginia. That location is notable for being home to the world’s largest concentration of data centers, facilities that are consuming increasing amounts of energy as demand for artificial intelligence and cloud computing surges.
While financial terms of the agreement were not disclosed, Google also said it is increasing its investment in CFS. The company was among investors who backed the fusion startup with $1.8 billion in 2021. Though Google declined to share the latest investment figure, CFS CEO Bob Mumgaard described it as “comparable” to the earlier funding round.
Fusion energy differs from today’s nuclear fission in both process and potential impact. Instead of splitting atoms, fusion involves combining light atoms—such as hydrogen isotopes—to release vast amounts of energy. Unlike fission, fusion does not produce long-lived radioactive waste and poses less risk of catastrophic failure, making it a more sustainable option for the future.
Despite its promise, fusion remains technically challenging. Most fusion experiments to date—including those at national labs—have struggled to reach engineering break-even, where the energy produced exceeds the total energy input. One notable milestone occurred in 2022, when researchers at Lawrence Livermore National Laboratory achieved a brief net energy gain using lasers.
CFS, however, is taking a different approach by using powerful magnets in a method known as magnetic confinement fusion. The company aims to bring the ARC plant online by the early 2030s, though that timeline depends on overcoming remaining scientific and engineering hurdles.
Michael Terrell, Google’s head of advanced energy, acknowledged the risks involved: “Yes, there are some serious physics and engineering challenges that we still have to work through to make it commercially viable and scalable,” he told reporters. “But that’s something that we want to be investing in now to realize that future.”
CFS CEO Mumgaard echoed that sentiment, emphasizing the importance of bold partnerships. “Without partnership and without being bold and setting a goal and going for it, you won’t ever reach over those challenges,” he said. He also noted that the ARC plant will play a crucial role in understanding the “teething phase” of fusion technology—gaining real-world insights into how often systems break down and how to maintain stable operations.
As global power demands climb and pressure mounts to cut carbon emissions, the appeal of fusion energy is growing rapidly. Google’s move suggests that major tech players are not only watching developments closely—but are now actively shaping the fusion future.