On Monday, Alphabet's Google announced it has reached an agreement to purchase power from a fusion energy project in Virginia. Fusion, the process that powers the sun and stars, is not yet commercially viable on Earth. Google described this agreement as the first direct corporate power purchase for fusion technology, partnering with Commonwealth Fusion Systems (CFS), a company that originated from the Massachusetts Institute of Technology in 2018. The deal involves 200 megawatts of power from CFS's ARC project, which is expected to have a total capacity of 400 megawatts. This project is being developed in Virginia, which hosts the largest concentration of energy-intensive data centers in the world. The financial terms of the agreement were not disclosed.
For decades, physicists at national laboratories and private companies have been working to harness lasers and, in the case of the Commonwealth Fusion Systems (CFS), large magnets to initiate fusion reactions. These reactions involve forcing light atoms together to release significant amounts of energy. In 2022, the Lawrence Livermore National Laboratory in California briefly achieved a net energy gain in a fusion experiment using lasers.
However, reaching "engineering break-even"—where the energy produced by the reaction exceeds the total energy required to initiate it—has proven challenging. Additionally, for a fusion plant to be viable, the reactions must occur continuously rather than sporadically.
Michael Terrell, Google's head of advanced energy, stated in a recent call with reporters, "Yes, there are serious physics and engineering challenges we still need to address to make fusion commercially viable and scalable. But we are committed to investing in this area to help realize that future."
As global power demand surges due to artificial intelligence and data centers, interest in fusion energy is growing. Unlike nuclear fission, which splits atoms and produces significant radioactive waste, fusion has the potential to generate energy without creating large amounts of harmful byproducts. Furthermore, if successful, fusion could play a crucial role in combating climate change.
CFS plans to begin generating power from the ARC project in the early 2030s, but first, it must overcome several scientific challenges. "Without collaboration, boldness, and a clear goal, you won't be able to overcome those obstacles," said Bob Mumgaard, CEO and co-founder of CFS, during a press briefing. He noted that the ARC plant will provide valuable insights into the "teething phase" of fusion technology, particularly regarding the frequency of breakdowns in fusion machines and their reliability. Additionally, Google announced on Monday that it is increasing its investment in CFS, although the specific amount was not revealed. In 2021, Google was among several investors who contributed a total of $1.8 billion to CFS. Mumgaard indicated that the current fundraising efforts are similar in scale to the 2021 round.
