Fusion energy company Type One Energy has secured $87 million in new financing, adding significant momentum ahead of a much larger Series B round.
The latest funding was raised as a convertible note and brings the company’s total venture capital raised to more than $160 million.
According to the company, Type One Energy is currently preparing a $250 million Series B round at a reported pre-money valuation of $900 million.
Growing electricity demand strengthens fusion investment case
The funding comes as global electricity demand continues to rise, driven by data center expansion and broader electrification across industries. Forecasts suggest data centers alone could nearly triple their power consumption by 2035, while overall electricity demand is expected to grow steadily year over year.
Fusion energy is viewed as a potential long-term solution, offering the promise of large-scale, clean power generation without carbon emissions or long-lived radioactive waste.
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Stellarator-based approach targets commercial-scale power
Type One Energy is pursuing a magnetic confinement fusion approach using a stellarator design. In this configuration, powerful magnets are arranged in a complex, twisted ring to stabilize and control plasma at extremely high temperatures.
Stellarators are known for their ability to sustain plasma for extended periods, though no system has yet been deployed commercially for power generation. Type One aims to bridge that gap with a design optimized for grid-scale electricity production.
First commercial plant planned at former coal site
In 2024, the company entered an agreement with the Tennessee Valley Authority to locate its first commercial fusion power plant at the former Bull Run Fossil Plant site in Tennessee. The coal-fired facility was retired in 2023.
The planned plant, known as Infinity Two, is expected to deliver approximately 350 megawatts of electricity. If development proceeds as planned, the facility could begin operations in the mid-2030s.
Licensing model avoids plant ownership
Rather than owning and operating power plants itself, Type One Energy plans to license its core fusion technology to utilities and power providers. These partners would be responsible for constructing, owning, and operating the facilities, allowing Type One to focus on technology development and deployment.
Backed by established energy investors
Type One Energy previously raised a $29 million seed round in 2023, which was expanded to $82.5 million in 2024. That round included participation from Breakthrough Energy Ventures, Doral Energy-Tech Ventures, and TDK Ventures.
The latest funding further positions the company as one of the most well-capitalized fusion startups globally as it moves toward commercial deployment.
