Startups are advancing fusion power technologies, attracting significant investment amid growing energy demands.
Humans have pursued fusion power for decades to harness the energy of stars for electricity on Earth, but achieving this has consistently been projected just a decade away.
Recently, fusion startups have raised more than $10 billion in investments, with over a dozen securing over $100 million each, driven by increasing energy needs from data centers.
Main Approaches to Fusion Power
Magnetic confinement uses strong magnetic fields to contain superheated plasma. Commonwealth Fusion Systems is building magnets capable of 20 tesla fields for its Sparc demonstration device, planned for activation in late 2026, with a commercial plant potentially starting in Virginia by 2027 or 2028.
Within magnetic confinement, tokamaks and stellarators are key designs. Tokamaks, first theorized in the 1950s, include the Joint European Torus, which operated until 2023, and ITER, set to begin in France in the late 2030s. Startups like Tokamak Energy are upgrading spherical tokamak designs.
Stellarators, another magnetic confinement method, feature twisted shapes to manage plasma behavior. The Wendelstein 7-X in Germany has operated since 2015, and startups such as Proxima Fusion and Type One Energy are developing their own versions.
Inertial confinement compresses fuel pellets to fuse atoms, primarily using laser pulses. The National Ignition Facility in California achieved scientific breakeven, producing more energy from the reaction than consumed to spark it.
Nearly a dozen startups, including Focused Energy and Xcimer, are pursuing inertial confinement with lasers, while others like First Light Fusion use alternative methods such as pistons or electromagnetic pulses.
