Google Backs Fusion Energy: Signs 200MW Offtake Agreement with Commonwealth Fusion Systems

Google has signed a major power purchase agreement (PPA) for 200 megawatts (MW) of clean fusion power from Commonwealth Fusion Systems’ (CFS) first commercial fusion power plant, ARC. This plant, located in Chesterfield County, Virginia, is set to provide carbon-free power to the grid by the early 2030s.

The tech giant also has the option to buy electricity from more ARC plants in the future. As an investor in CFS since 2021, Google is increasing its stake in the fusion company. While financial terms are undisclosed, this agreement is a big step forward for fusion power and shows Google’s commitment to clean energy innovation.

Michael Terrell, Head of Advanced Energy at Google, said,

“By entering into this agreement with CFS, we hope to help prove out and scale a promising pathway toward commercial fusion power. We’re excited to make this longer-term bet on a technology with transformative potential to meet the world’s future energy demand, and support CFS in their efforts to reach the scientific and engineering milestones needed to get there.”

What Is Fusion, and Why Does It Matter?

Fusion energy combines two light atoms, like hydrogen, into a heavier one, releasing a lot of energy. This is the same reaction that powers the sun.

The IAEA states that fusion could produce four times more energy per kilogram than nuclear fission, which current nuclear power plants use. It can generate millions of times more energy than fossil fuels. Best of all, it’s clean and carbon-free.

Commonwealth Fusion Systems: The Company Behind the Breakthrough

CFS spun out of MIT’s Plasma Science and Fusion Center in 2018. Based in Massachusetts, the fusion giant is working on compact, efficient fusion technology to make fusion power practical and scalable. The company combines breakthrough science with rapid engineering. Using high-temperature superconducting (HTS) magnets and proven tokamak designs, the company aims to bring fusion to the grid quickly and affordably.

Notably, with over $2 billion in support from private and public investors, Commonwealth Fusion Systems leads the way toward a zero-carbon energy future.

Bob Mumgaard, CEO and Co-founder of CFS, said,

“Fusion power is within our grasp thanks in part to forward-thinking partners like Google, a recognized technology pioneer across industries. Our strategic deal with Google is the first of many as we move to demonstrate fusion energy from SPARC and then bring our first power plant online. We aim to demonstrate fusion’s ability to provide reliable, abundant, clean energy at the scale needed to unlock economic growth and improve modern living – and enable what will be the largest market transition in history.”

SPARC to ARC: How the Fusion Journey Begins

The Google-CFS deal connects to SPARC, a compact fusion machine being built at CFS’s campus in Devens, Massachusetts. SPARC uses a tokamak design, a donut-shaped device that holds super-hot plasma with powerful magnetic fields.

With high-temperature superconducting (HTS) magnets, SPARC will be smaller and more efficient than earlier fusion models. Its goal? Achieve net energy gain (Q>1), where it produces more energy than it uses. Once that’s achieved, the technology will power ARC, the world’s first grid-scale fusion power plant.

ARC: Compact, Clean, and Ready for the Grid

ARC aims to generate 400 MW of firm, carbon-free power, similar to a natural gas plant. It can fit easily into existing power grids, providing clean, reliable electricity.

Here’s what makes ARC unique:

Zero carbon emissions
Small land footprint — the size of a big-box store
Safe design — no risk of meltdown or long-lived radioactive waste
Rapid ramp-up/down — supports both baseload and flexible power needs
Abundant fuel — uses deuterium from seawater and self-produces tritium
Minimal fuel needs — one truck can hold 30 years’ worth of fuel

ARC not only competes with fossil fuels but also surpasses them in cost, location flexibility, and safety. It complements renewables like solar and wind by providing steady backup power.

ALSO READ: Commonwealth Fusion Systems’ Innovative Magnet Powers Fusion to the Grid

Job Creation and Local Impact

The Chesterfield County project will create hundreds of jobs during construction and operation. The site near Richmond, Virginia, was chosen for its growing energy needs and strong local infrastructure.

Meeting AI and Electrification Demands

As AI and data centers increase electricity use, traditional energy sources struggle to keep up. Fusion could provide clean, reliable power that meets global demand without harming the planet.

Fusion also avoids the resource bottlenecks of fossil fuels and uranium systems. Since hydrogen is widely available, fusion fuel will remain cheap and stable, unlike natural gas prices, which can fluctuate wildly.

A Climate Moonshot: Why Google Is All In

Google’s partnership with CFS is part of its climate mission. In 2024, Google added 2.5 gigawatts of new clean energy across multiple data center regions. The company also signed deals for advanced geothermal and small modular nuclear reactors (SMRs) and uses AI to optimize grid integration.

With this new fusion deal, Google is betting on the next generation of carbon-free energy. The tech giant understands that securing clean, reliable power is essential for future-proofing its data centers and services.

GOOGLE data center energy emissions — Source: Google

For instance, last year Google signed the first corporate deal to buy power from Kairos Power’s small modular reactors (SMRs), aiming to add up to 500 MW of clean energy to U.S. grids by 2035. The first reactor is expected to be operational by 2030.

RELATED: Google and Chevron Back TAE Technologies as It Nears Fusion Power Breakthrough

Fusion Industry’s Momentum Is Growing

The global fusion race is heating up. The Global Fusion Industry Report shows that over 45 companies have entered the field, raising more than $7 billion in funding. Public-private partnerships are vital, and government support has recently increased by more than 50%.

CFS is leading this charge with real progress. It’s creating a blueprint for a clean energy future. Fusion power from ARC promises low-cost, high-impact solutions for nations, industries, and communities everywhere.

By backing this technology early, Google is securing a clean, stable energy supply for its growing needs. It shows that fusion is no longer science fiction; it’s becoming a commercial reality.