Google, a subsidiary of Alphabet (GOOGL, Financial), has announced a significant power purchase agreement with Commonwealth Fusion Systems (CFS), a startup derived from MIT. This agreement entails the purchase of 200 megawatts (MW) of power from CFS's first commercial nuclear fusion power plant, slated to be operational in the early 2030s. This marks one of the largest corporate direct purchases of fusion energy to date.
In addition to this agreement, Google has further invested in CFS, following its participation in the company's $1.8 billion fundraising in 2021. While the investment amount remains undisclosed, CFS CEO Bob Mumgaard mentioned it is comparable to the previous investment. The collaboration highlights Google's commitment to sustainable energy solutions, particularly for its AI and data center power needs.
Google's senior energy director, Michael Terrell, emphasized the necessity of advancing high-energy technologies due to the rising power demands from AI models. CFS, founded in 2018, is developing its demonstration system, Sparc, anticipated to achieve a critical "ignition" threshold by 2027. Following Sparc, CFS aims to establish a commercial version, "ARC," in Virginia, adjacent to a Dominion Energy facility.
