Google backs Proxima Fusion's €411 million round for 2030s plant

Google and RWE join a €411 million funding round for Proxima Fusion, Europe's best-funded nuclear fusion startup targeting a commercial power plant in the 2030s.

Google and German utility RWE invested in Proxima Fusion's €411 million funding round, backing the nuclear fusion startup's plan to build Europe's first commercial fusion power plant at a decommissioned RWE nuclear site in Bavaria by the 2030s.

"This funding allows us to accelerate development of the Alpha demonstrator and move toward commercial operations," Francesco Sciortino, chief executive officer of Proxima Fusion, said.

The round values the three-year-old company at €2.4 billion. XTX Ventures and East X Ventures led the financing, with KfW Capital and the European Union's EIC Fund also participating. More than 90% of investors are based in Europe. Proxima Fusion has now raised more than €650 million in total, including €95 million in public grants.

The investment reflects Big Tech's growing demand for carbon-free electricity to power expanding data center operations. Proxima Fusion's stellarator design — a twisted, doughnut-shaped reactor that uses magnetic fields to confine superheated plasma at temperatures exceeding 100 million degrees Celsius — offers a more stable alternative to tokamak reactors, though no commercial fusion plant has ever operated at grid scale.

How the Stellarator Differs

Proxima Fusion's technology relies on a stellarator, a reactor type that uses twisted magnetic coils to confine plasma without the risk of sudden disruptions that plague tokamak designs. The company operates offices in Munich, Zurich and Oxford. Sciortino said the stellarator's inherent stability gives it an advantage over both large tokamak reactors and newer laser-based approaches being pursued by competitors.

The Alpha demonstrator, planned for the decommissioned RWE site in Bavaria, is expected to cost about €2 billion. Proxima Fusion committed to funding one-fifth of the project, with the state of Bavaria pledging a similar share. Sciortino said the remaining capital would come from Germany's federal government and the European Union.

Competition and Capital

Proxima Fusion trails several US rivals in total funding. Commonwealth Fusion Systems has raised nearly $3 billion, while Helion Energy Inc., backed by OpenAI's Sam Altman, has attracted significantly more capital. Sciortino argued that comparisons should account for company age, saying "we are faster than anyone else."

RWE invested €25 million in the round. Google declined to disclose the size of its investment, and Sciortino said there are no specific plans between the two companies related to data centers. Google previously agreed in 2025 to purchase 200 megawatts of electricity from Commonwealth Fusion Systems.

Proxima Fusion previously raised €130 million in 2025. The company describes itself as Europe's best-funded nuclear fusion startup following the latest round, which was announced July 7.

For investors, the deal signals that large technology and energy companies are placing early bets on fusion as a potential long-term power source. Proxima Fusion's path to commercialization remains years away, with the Alpha demonstrator not expected to operate until the early 2030s and a commercial plant following later. The company's €2.4 billion valuation reflects the high risk and long timeline inherent in fusion technology, where no company has yet demonstrated net energy gain at commercial scale.

This article is for informational purposes only and does not constitute investment advice.