At a Glance
- Type One Energy closed an $87 million convertible note, pushing total venture funding past $160 million
- The company is now raising a $250 million Series B at a $900 million pre-money valuation
- Infinity Two, a 350-megawatt stellarator plant, could begin operation in the mid-2030s
- Why it matters: Data-center electricity demand is forecast to triple by 2035, and fusion promises limitless clean power without meltdown risk
Type One Energy has banked fresh capital as utilities scramble for carbon-free electricity to feed booming data centers. According to sources familiar with the deal, the fusion startup recently closed an $87 million convertible note. The round lifts total venture investment above $160 million and sets the stage for a larger Series B raise already under way.
Sources told News Of Philadelphia that Type One is targeting $250 million in its next financing at a $900 million pre-money valuation, terms the company later confirmed.
Stellarator Design Chosen for First Commercial Plant
The Madison, Wisconsin-based company will employ a stellarator, a twisted-doughnut magnetic-confinement design that has proven able to hold plasma for extended periods in past experiments. Type One’s approach differs from laser-driven inertial confinement systems; instead, powerful magnets compress and steer plasma until atoms fuse, releasing heat that can spin turbines much like today’s fossil-fuel plants-but without carbon emissions or long-lived radioactive waste.
Fusion reactors also eliminate the risk of runaway meltdowns that plague conventional fission reactors.
TVA Deal Anchors Go-to-Market Strategy
Last year Type One signed agreements with the Tennessee Valley Authority to install its first commercial reactor, dubbed Infinity Two, at the retired Bull Run Fossil Plant near Oak Ridge, Tennessee. The coal plant shut in 2023; the fusion facility is slated to supply 350 megawatts to the grid once it enters service in the mid-2030s.
Rather than build and operate plants itself, Type One will license core technology to utilities. Under the TVA arrangement, the authority will own and run the plant while Type One collects revenue from intellectual-property sales and ongoing support services.
Capital Timeline
| Round | Year | Amount Raised |
|---|---|---|
| Seed | 2023 | $29 million |
| Seed extension | 2024 | $53.5 million |
| Convertible note | 2025 | $87 million |
| Series B (planned) | 2025 | $250 million |
Previous backers include Bill Gates’ Breakthrough Energy Ventures, Doral Energy-Tech Ventures, and TDK Ventures.
Market Tailwinds
Data centers are projected to consume nearly three times more electricity by 2035, while overall U.S. power demand is forecast to expand 4 percent annually through next year. Fusion’s promise of gigawatt-scale, on-demand, carbon-free generation has attracted utility interest as corporations seek 24/7 clean energy to meet climate commitments.
Type One’s stellarator competes with tokamak designs championed by Commonwealth Fusion Systems and Helion, as well as laser-based approaches pursued by national laboratories. The company argues that stellarators offer steadier plasma control, reducing wear on reactor walls and improving uptime economics.
Key Takeaways
- Type One’s $87 million note adds momentum ahead of a $250 million Series B that would value the company at $900 million pre-money
- Infinity Two, the 350-megawatt TVA plant, could become the first stellarator to feed commercial electricity into the U.S. grid
- By licensing rather than building, Type One aims to scale faster while capital-intensive utilities shoulder construction risk
- Soaring data-center demand gives fusion developers a potentially huge offtake market if they can deliver cost-competitive power before 2040
