ARPA-E steps up push to commercialize fusion as US power demand rises

The US Department of Energy’s Advanced Research Projects Agency–Energy (ARPA-E) said it is stepping up efforts to move fusion power closer to commercialization, with a focus on reducing technical risk and helping projects attract private investment.

ARPA-E said it has invested $134 million in fusion-related work since 2014, and that the support helped catalyze about $1.5 billion in private-sector funding for fusion projects.

The agency linked its increased focus to rising electricity demand. It cited US electricity consumption of 4,157 terawatt-hours (TWh) in 2024 and projections that data centers could account for 10% of US electricity use by 2028, up from 4.4%.

From “big science” to commercial development ARPA-E said its fusion strategy began in 2014 with the ALPHA program, which it described as an effort to lower technical and engineering risks across multiple approaches to fusion power while improving their ability to attract private capital.

The agency pointed to growth in the commercial fusion sector over the past decade, saying the number of firms worldwide has increased from 12 in 2014 to more than 45 today. ARPA-E said 25 of those companies are US-based and have attracted 70% of the industry’s $10 billion in total investment.

Materials, reactor durability, and energy density ARPA-E highlighted work on novel materials for fusion power plants, including materials for reactor “first walls” designed to withstand extreme operating conditions.

It also cited fusion’s energy-density potential, including an estimate that a deuterium-tritium (DT) fusion power plant would have an energy density of 340 million megajoules per kilogram—higher than uranium-235, natural gas, and coal.

ARPA-E said it plans to invest an additional $135 million over the next 18 months to advance fusion research and development.