Google has made its first strategic investment in a European nuclear fusion company, backing the German startup Proxima Fusion alongside energy giant RWE. The move underscores how the biggest technology firms are increasingly treating energy access as a condition for further artificial intelligence development.
The Munich-based startup, which emerged from the Max Planck Institute for Plasma Physics, plans to build a demonstration reactor in Gundremmingen within a few years. The project is estimated to cost €2 billion. In its latest funding round, Proxima Fusion raised €411 million, pushing its valuation to €2.4 billion.
The round was led by XTX Ventures, the investment arm of British billionaire Alex Gerko, which contributed about 25% of the total, and East X Ventures. Google joined as a strategic investor – its first such move in Europe – while RWE, a German energy group also active in Poland, invested €25 million. Other participants include venture capital funds Plural, UVC Partners, Balderton and Cherry Ventures.
Google’s strategic investment in fusion technology
Proxima Fusion is developing a stellarator, a type of fusion reactor that mimics processes inside the Sun by fusing atomic nuclei in extremely hot plasma, releasing vast amounts of clean energy. Unlike conventional nuclear fission, fusion involves combining two hydrogen atoms into one helium atom. The company is also seeking public support – it has applied for €1.2 billion in federal funding from the German government, plus €400 million promised by the Bavarian authorities.
Google is not betting on a single technology. The Mountain View giant has invested in Commonwealth Fusion Systems (CFS), an American startup building tokamak-type reactors. In June 2025, Google expanded that cooperation with a long-term PPA, securing up to 200 MW of power from CFS’s first commercial ARC fusion plant, expected early next decade.
Google has also backed TAE Technologies, which is developing an alternative fusion approach, and signed a deal with Kairos Power for energy from small modular reactors (SMRs) to power data centers before fusion becomes commercial.
The race for clean AI energy
– A few years ago, leadership in the AI race was determined mainly by programmer skills, data access and computing power. Today, ensuring uninterrupted energy supplies for data centers years ahead is equally important. In practice, this means Google, Microsoft and Amazon increasingly operate not only as tech companies but also as infrastructure investors, engaging in nuclear, renewables and their own generation projects – said Marcin Stypuła, a Google expert and founder of the internet marketing agency Semcore.
By diversifying its energy sources – from fusion to SMRs and long-term contracts – Google is securing the vast and stable electricity needed to run its growing AI infrastructure. The company’s portfolio now spans multiple reactor types and development stages, reflecting a strategic shift: clean, baseload power is no longer a nice-to-have but a core requirement for tech growth.
Źródło: WNP.PL, Fot. Longfin Media / Shutterstock
