Pacific Fusion to build $1 billion nuclear fusion site in Albuquerque

Months of speculation came to an end Friday when Pacific Fusion announced it will build its first research and manufacturing campus in Albuquerque, New Mexico. The $1 billion project marks a major milestone for the state, positioning Albuquerque at the forefront of fusion energy innovation.

The California-based startup, founded in 2023, selected Mesa del Sol as the site for its 225,000-square-foot facility after a competitive process that also included California cities Livermore and Alameda. State and local leaders celebrated the win as a transformative moment for New Mexico’s economy and role in the global clean energy sector.

A Landmark Win for New Mexico

“It feels great to win here in New Mexico,” said Economic Development Secretary Rob Black. “When you talk about fusion companies around the world, Pacific Fusion is one that a lot of people are betting will be successful in this technology race.”

Albuquerque secured the deal with a package of incentives, including $776.6 million in industrial revenue bonds—effectively granting 20 years of tax exemptions—and $10 million in economic development support. Officials estimate the project will generate more than $400 million in economic activity during its first four years of operation and create over 200 long-term jobs, plus hundreds more during construction.

Mayor Tim Keller hailed the project as a “shot-in-the-arm booster” for Albuquerque’s economy. “In the long run, it puts us at the forefront of sustainable fusion technologies in the world,” Keller said.

Building on New Mexico’s Strengths

Pacific Fusion leaders emphasized that New Mexico’s history of scientific innovation, particularly at Sandia National Laboratories, was a key factor in their decision.

“New Mexico’s leadership in applied physics innovation will help us advance clean energy technologies — in particular, fusion technologies — which are, in some ways, the holy grail of clean energy,” said co-founder and COO Carrie von Muench.

Fusion energy, the same process that powers the sun, has long been seen as a nearly limitless source of clean power. While commercial fusion has eluded scientists for decades, von Muench said recent breakthroughs — including work at Sandia’s Z Pulsed Power Facility and a new efficiency-boosting technology developed by Pacific Fusion CTO Keith LeChien — are changing that narrative.

“You might be familiar with the running joke, which is that fusion is 30 years away and always will be,” von Muench said. “We founded this company because that is no longer the case.”

Why Mesa del Sol?

Mesa del Sol offered a mix of advantages: sufficient power supply, available acreage, and proximity to both a growing residential workforce and other advanced technology firms like Kairos Power.

“It’s seeing tremendous housing growth, which is amazing from an ability to attract workforce,” said Chad Matheson, interim CEO of the Albuquerque Regional Economic Alliance (AREA). “In addition to having a great anchor tenant with Kairos Power, there’s going to be workforce synergies attracting people to Mesa del Sol.”

Pacific Fusion plans to break ground on the facility next year. In the meantime, the company will establish a smaller “build center” in Albuquerque to manufacture key machinery components ahead of the campus’ completion.

Toward a Fusion Future

Pacific Fusion’s rapid rise has been fueled by more than $900 million in Series A funding from major venture capital firms, including General Catalyst and Breakthrough Energy Ventures. The company’s mission is ambitious: to “power the world” with affordable, on-demand fusion energy — without carbon emissions or long-lived radioactive waste.

For New Mexico, the project represents more than just jobs and investment. Officials say it’s an opportunity to anchor the state in an emerging clean energy economy.

“We’re mutually really excited to be able to build this next-generation facility right in the backyard of the facility that made it possible,” von Muench said. “We hope to make New Mexico not just the site of a single project, but the birthplace of a fusion economy.”