Realta Fusion lands $55m for US reactor as AI fuels power demand

Realta Fusion is converting a former hot dog factory in Madison, Wisconsin, into a fusion research centre, securing an estimated $55 million in local and state incentives.

The facility, named Forge, is scheduled to produce its first plasma in 2029. The startup recently demonstrated the ability to convert energy from fusion reactions directly into electricity, a technical step that could streamline the path to a commercial power plant.

The investment highlights how surging electricity demand from AI data centres and economy-wide electrification is accelerating the global fusion race. Fusion startups have raised over $1.5 billion this year alone, intensifying competition for European firms also vying to bring the technology to market.

Unlike most fusion startups, which typically cluster near national laboratories or coastal tech hubs, Realta is building in the Midwest. The company, a spinout from the University of Wisconsin-Madison, was swayed by bipartisan political backing. The state enacted a sales tax exemption for the fusion industry in April, saving Realta an estimated $37.5 million. This is supplemented by $15 million in state enterprise zone tax credits and $2.8 million in city financing.

Access to specialised talent was a deciding factor. The local university supplies a steady stream of plasma physicists, and the region is already home to another fusion company, Shine. “Wisconsin really decided they want to throw their weight behind fusion,” said Kieran Furlong, co-founder and CEO of Realta Fusion.

The move follows the departure of another local fusion startup, Type One Energy, which relocated to Tennessee in 2024. For Realta, staying put offers strategic advantages in a crowded field. “It’s also advantageous to be the state champion,” Furlong said. “We get the attention of people who matter, who can help us, who want to see Realta succeed and want to see Wisconsin be a major hub for fusion.”