Two of the largest technology companies have signed agreements to buy electricity from fusion power plants that do not yet exist. Microsoft agreed in 2023 to buy power from Helion Energy starting in 2028, and Google agreed in 2025 to buy power from Commonwealth Fusion Systems’ planned plant in Virginia in the early 2030s. For real estate investors, these deals raise a question about where data centers and related industrial demand may concentrate. This page sets out what has actually been signed, what remains uncertain, and how to think about real estate near the planned plants. For the credit framework behind net lease investing, see the investment grade guide.
What Has Been Signed
| Buyer | Fusion developer | Plant and location | Terms announced | Status |
|---|---|---|---|---|
| Microsoft | Helion Energy | Orion, Malaga, Washington (Chelan County) | At least 50 MW beginning in 2028; Constellation Energy as power marketer | Signed May 2023; construction began in 2025 |
| Commonwealth Fusion Systems (CFS) | ARC, Chesterfield County, Virginia | 200 MW of a planned 400 MW plant, with power targeted for the early 2030s | Signed June 2025; Google also increased its investment in CFS |
These are the two signed fusion power purchase agreements described on this page. Other large technology companies are pursuing different technologies: Amazon has focused on nuclear fission, including a power agreement tied to Talen Energy’s Susquehanna plant in Pennsylvania, and Meta has sought proposals for new nuclear generation. Interest, requests for proposals, and fission contracts are not signed fusion offtake.
Both fusion developers are private and still demonstrating their technology. CFS has been building its SPARC demonstration machine in Devens, Massachusetts and targeted first plasma in 2026; Helion is testing its Polaris prototype, which it hopes will demonstrate electricity from fusion. First-of-a-kind projects frequently run late and over budget.
Why Power Drives Data Center Siting
Artificial intelligence workloads have made electric power the main constraint on new data centers in many markets, alongside interconnection queues and transmission. That pushes large buyers to contract for power directly and to site load where firm power is available. A signed offtake agreement at a specific plant gives the buyer a reason to locate compute load in the same region, though transmission, fiber, land, and incentives still matter.
In August 2025, Virginia announced that Google would invest $9 billion in the state through 2026, including a new data center in Chesterfield County, the county that will host CFS’s ARC plant.
Tenant Credit for Data Center Leases
The companies behind these agreements are among the strongest credits in the market. Microsoft is rated no verified rating by S&P and no verified rating by Moody’s. Alphabet, Google’s parent, is rated AA+ by S&P and Aa2 by Moody’s. A data center lease is only as strong as the entity that signs or guarantees it, so confirm whether the lease is with the parent or a project subsidiary.
For long data center leases, the larger risk is often obsolescence: power density and cooling requirements change, and a facility can lose relevance before its lease ends. Access to contracted power may reduce that risk for a specific site, but it does not remove it.
Real Estate Near the Planned Plants
Chesterfield County, Virginia. South of Richmond, in Dominion Energy’s service territory and the PJM grid. CFS plans ARC at the James River Industrial Center on land leased from Dominion Energy. Possible related demand includes industrial and flex space for suppliers and contractors, logistics serving construction, and data center development.
Chelan County, Washington. Along the Columbia River near Wenatchee, an area that has long attracted data centers because of hydroelectric power. Helion’s Orion site is on land leased from the Chelan County Public Utility District. The market is thinly traded, which means fewer comparable sales and less liquidity.
We have not seen a dated, sourced dataset showing that cap rates in either submarket have moved because of the fusion announcements. Any pricing effect is an investment hypothesis, not an observed fact. Factors that would matter include whether the plants are built on schedule, transmission and interconnection, the pace of data center construction, local supply of land and buildings, interest rates, and the credit and lease terms of actual tenants.
Risks
- Technology and schedule. Demand for nearby real estate may depend on whether the fusion plants are built and operate as planned. Owning nearby property avoids direct ownership of a fusion developer, but its demand and value can still depend on commercialization, transmission, and construction outcomes.
- Transmission and interconnection. Power that cannot reach load efficiently is worth less to the buyer.
- Policy and permitting. State and local approvals can change.
- Liquidity. Smaller submarkets have fewer buyers and comparable sales.
- Obsolescence. Data center specifications evolve quickly.
1031 Exchanges
Industrial, flex, and data center real estate held for investment can qualify as like-kind replacement property in a 1031 exchange, subject to the usual rules and deadlines. Delaware statutory trusts are another way to hold real estate in an exchange; review each offering’s properties, fees, and risks. See the investment grade 1031 exchange guide.
Frequently Asked Questions
Which technology companies have signed fusion power purchase agreements?
The two signed agreements described here are Microsoft with Helion Energy (May 2023, at least 50 MW beginning in 2028) and Google with Commonwealth Fusion Systems (June 2025, 200 MW from the ARC plant in Virginia in the early 2030s). Amazon’s and Meta’s announced efforts have focused on nuclear fission, not signed fusion offtake.
Where are the first fusion plants planned?
Helion’s Orion plant in Malaga, Chelan County, Washington, and CFS’s ARC plant in Chesterfield County, Virginia.
Will cap rates fall near fusion plant sites?
Possibly, but that is a hypothesis. No dated dataset we have seen shows a fusion-driven cap rate change. Pricing will depend on whether the plants are built, transmission, data center construction, local supply, interest rates, and actual tenant credit and leases.
Does investing in nearby real estate remove fusion technology risk?
No. It avoids owning the fusion developer directly, but demand for the real estate can still depend on whether the plants are built and operate on schedule.
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