Google strikes deal to buy fusion power from MIT spinoff Commonwealth - Reuters

Google strikes deal to buy fusion power from MIT spinoff Commonwealth - Reuters

In a significant advancement in the renewable energy sector, Google has announced an agreement to purchase half of the output from Commonwealth Fusion Systems' (CFS) first commercial power plant. The deal, which was made public on June 30, 2025, is a strategic move for Google to secure a steady and reliable source of electricity for its data centers.

The Arc power plant, expected to come online in the early 2030s, will supply Google with 200 megawatts of electricity. In return, Google is investing in a new funding round for CFS, with the amount expected to be comparable to its previous Series B round, which raised $1.8 billion in 2021 [1]. This investment will support CFS in accelerating its research and development, particularly for the Arc power plant.

CFS, a spin-off from MIT, is currently building a demonstration reactor called Sparc, which is scheduled for completion in 2026. The Arc power plant, which will be built near Richmond, Virginia, will serve as a commercial-scale prototype for fusion energy technology.

Google's decision to invest in fusion power is part of its broader strategy to diversify its energy portfolio. The company has been actively pursuing various renewable energy sources, including solar, wind, and batteries, as well as more advanced technologies like geothermal and small modular nuclear reactors [1]. Fusion energy, with its potential to provide clean, firm power 24/7, aligns with Google's long-term goals to ensure the sustainability of its data centers.

The agreement with CFS is the second such deal for a major company to purchase power from a fusion startup. In 2023, Microsoft signed a similar agreement with Helion [1]. These deals highlight the growing interest and investment in fusion power as a viable alternative to traditional energy sources.

The deal is expected to have a significant impact on the fusion energy sector. CFS co-founder and CEO Bob Mumgaard is optimistic that fusion power can become a major source of electricity, once the technology is proven and scalable. "Once you show that you can do this and have a first power plant up and running, you could scale it. You could build this around the world," Mumgaard said [1].

References:
[1] https://techcrunch.com/2025/06/30/google-inks-its-first-fusion-power-deal-with-commonwealth-fusion-systems/