Google deepens its investment in Commonwealth Fusion Systems with a 200MW power agreement, marking a major step toward commercial fusion energy via CFS’s ARC plant in Virginia.

Alphabet Inc.’s (GOOGL) (GOOG) Google has agreed to purchase 200 megawatts of power from Commonwealth Fusion Systems’ (CFS) first ARC fusion power facility, set to be built in Chesterfield County, Virginia. 

The project is expected to come online in the early 2030s.

Alphabet stock inched lower by 1.1% on Monday morning after the news.

The tech giant has held a stake in Massachusetts-based CFS since 2021 and will now increase that investment as part of an expanded strategic partnership. 

Google’s deal marks its first direct procurement of fusion-generated power, anchoring its confidence in CFS’s approach. The ARC reactor design, underpinned by high-temperature superconducting magnet technology, is intended to deliver 400 megawatts of net electricity, matching the capacity of many traditional natural gas plants.

The Chesterfield site is on track to become the world's first grid-scale fusion facility.

Google also secured an option to acquire electricity from future ARC reactors, reinforcing the company’s push to meet rising demand from AI computing and electrification efforts through sustainable power sources. 

At the heart of CFS’s vision is SPARC, a compact, high-magnetic-field tokamak reactor being developed at its headquarters in Devens, Massachusetts. 

Once SPARC demonstrates a net energy gain, a milestone known as Q>1, it will clear the path for commercial deployment of the ARC plant. Fusion technology, which fuses hydrogen atoms to release immense energy, offers round-the-clock clean electricity without the resource constraints of solar, wind, or fossil fuels.

“By entering into this agreement with CFS, we hope to help prove out and scale a promising pathway toward commercial fusion power,” said Head of Advanced Energy at Google, Michael Terrell.

While the terms of Google’s increased stake weren’t disclosed, the deal positions the company alongside other fusion-focused backers who are betting on commercial viability.

On Stocktwits, retail sentiment around Alphabet remained in ‘bullish’ territory amid ‘high’ message volume.

GOOGL's Sentiment Meter and Message Volume as of 11.15 a.m. ET on Jun.30, 2025 | Source: Stocktwits

Alphabet stock has lost over 6% year-to-date and over 3% in the past 12 months.

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