On 30 June, Google signed a landmark 200MW Power Purchase Agreement (PPA) with Commonwealth Fusion Systems to draw power from its ARC fusion plant in Virginia, USA – expected to come online in the early 2030s. Microsoft, notably, has had a similar deal in place since 2023 with Helion Energy for 50MW of fusion-sourced electricity by 2028.
These moves, while bold, are more than speculative punts. They mark the beginning of fusion entering the commercial mainstream – specifically, as a power source for energy-hungry, AI-driven data centres. For investors and innovators in the fusion sector, this is both validation and acceleration. 🚀
Fusion has long been heralded as the holy grail of clean energy – safe, reliable, and practically inexhaustible. But the road to commercialisation has often been longer than hoped. Today, however, the field is shifting: serious capital, public-private partnerships, and technological breakthroughs mean we’re closer than ever to seeing fusion contribute meaningfully to the energy transition.
Energy Mix: PPAs by Region
Data centres are not waiting for fusion alone – they’re aggressively sourcing renewables through PPAs around the globe:
- North America: Data centres are driving much of the growth in the 18GW of new energy procurement, with the split roughly 50% solar, 25% wind, and 25% nuclear.
- Europe (including UK): Around 12GW of PPAs, with 80% sourced from wind and solar.
- Asia-Pacific: While data is patchier, APAC accounts for a striking 27GW in PPAs – mostly solar and wind. In China, authorities are mandating 80% renewables for data centres and other energy-intensive industries such as steel and cement.
Gas Turbines: Stopgap or Strategy?
Despite the growth in renewables, many data centre operators are turning to gas turbine generators for primary power – especially where grid connection delays stretch 5–10 years.
Rolls-Royce, for example, sees data centres as a major customer segment in its gas turbine order books. Chevron, in collaboration with Engine No. 1 and GE Vernova, is developing multi-gigawatt gas turbine power plants to supply data centres in the US from as early as 2027.
While these turbines can run on green or blue hydrogen, they more often rely on natural gas or hydrogen blends, unless clean fuel infrastructure is already in place. In the UK, plans for small-scale gas plants directly linked to the natural gas grid are under discussion -providing a pragmatic, if not entirely clean, solution to immediate power constraints.
The UK Fusion Horizon
Closer to home, NovAzure recently spoke about how to grow an integrated ecosystem to catalyse a UK-based fusion innovation value chain, linking academia, start-ups, corporates, and the public sector.
Fusion delivery teams are being trained in universities and colleges today – so the foundations are being laid for tomorrow’s breakthroughs.
Conclusion
Data centres are racing to decarbonise, juggling a mosaic of clean power strategies – from PPAs and on-site renewables to gas turbines and early fusion investments. Google and Microsoft’s forays into fusion aren’t just headline-grabbing – they’re indicators of a future where hyperscale computing and sustainable energy evolve together.
NovAzure helps clients scale the innovations that accelerate the energy transition – including the fusion value chains of tomorrow.
