Microsoft set to acquire fusion power as Helion Energy initiates construction of Orion plant
Microsoft, a tech giant known for its significant contributions to the digital world, is making waves in the energy sector with its ambitious clean energy push. This strategy, driven by surging electricity needs tied to AI development and cloud infrastructure, is set to supply over 800MW of carbon-free electricity to the company's operations starting in 2028.
Industry analysts predict that data center energy use will double by 2028, fueled by generative AI technologies and hyperscale computing. In response, Microsoft is leading the charge in the tech industry, amassing more than 84 gigawatts of clean energy capacity across 29 countries, collectively with tech giants like Amazon, Google, and Meta.
A key player in this clean energy revolution is Helion, an emerging fusion firm that Microsoft has partnered with. Helion's unique approach to fusion energy uses pulsed, non-ignition fusion with deuterium and helium-3 fuel, promising scalable, flexible, and affordable zero-carbon baseload power.
Helion's Polaris prototype, completed by the end of 2024, started initial operations last year and is expected to demonstrate the first electricity produced from fusion as early as this year, 2025. Following Polaris, Helion is developing the Orion fusion power plant, which began construction in mid-2025 in Chelan County, Washington, and is expected to be operational by 2028, targeting a power output of 50 megawatts or greater after a one-year ramp-up period.
Helion's progress towards commercial fusion energy marks a major milestone. The partnership with Microsoft, which has signed a power purchase agreement to buy electricity from the Orion plant by 2028, signals strong industry and investor confidence in fusion as a future energy source to support large-scale applications such as data centers powering AI technologies.
However, challenges remain, including technical difficulties with plasma containment, thermal stresses, and the high initial capital investment. Most analysts forecast commercial fusion deployment on a broader scale in the late 2030s or 2040s despite Helion's near-term breakthroughs.
In addition to fusion energy, Microsoft's clean energy strategy also includes nuclear power. The company has invested in multiple nuclear projects, including a 20-year PPA to purchase power from the restarted Three Mile Island nuclear facility in Pennsylvania. This strategy is helping revive shuttered nuclear facilities and create local jobs.
Microsoft has also joined influential advocacy groups like the Fusion Industry Association and the U.S. Nuclear Industry Council (USNIC), demonstrating its commitment to a sustainable energy future.
In summary, Microsoft's clean energy strategy, which includes investments in fusion energy and nuclear power, is a significant step towards a carbon-free future. The company's partnership with Helion, a pioneer in fusion energy, and its investments in nuclear projects, signal a strong commitment to sustainable energy solutions that can power the digital world of tomorrow.
- Microsoft, in response to surging electricity needs for AI development and cloud infrastructure, is leading the tech industry in amassing clean energy capacity, totaling over 84 gigawatts across 29 countries.
- Helion's unique approach to fusion energy, through pulsed, non-ignition fusion, promises scalable, flexible, and affordable zero-carbon baseload power, a key component in Microsoft's clean energy strategy.
- The partnership between Microsoft and Helion, supported by a power purchase agreement, indicates strong industry and investor confidence in fusion as a future energy source, particularly for large-scale applications such as data centers.
- Microsoft's clean energy strategy extends beyond fusion, with investments in nuclear power projects, including the restarted Three Mile Island nuclear facility in Pennsylvania, which is reviving shuttered nuclear facilities and creating local jobs.
