TVA and Type One Energy join forces to build America’s first stellarator fusion power plant

The Tennessee Valley Authority (TVA) has taken a decisive step into the future of clean energy, signing a Letter of Intent (LOI) with privately held Type One Energy to explore building a 350-megawatt stellarator fusion power plant at the former Bull Run Fossil Plant site near Oak Ridge, Tennessee. If realized, the project—named Infinity Two—would mark the United States’ first commercial stellarator-based fusion facility and could redefine how baseload electricity is produced in the age of artificial intelligence, quantum computing, and advanced manufacturing.

This collaboration underscores TVA’s drive to maintain its national leadership in nuclear innovation, while Tennessee Governor Bill Lee has framed it as part of his administration’s broader strategy to turn Tennessee into a hub for next-generation energy jobs. Although no final investment decision has been made, the agreement signals mounting confidence in stellarator fusion technology’s readiness for near-term commercialization—a sharp contrast to the decades-long timelines that have defined mainstream fusion efforts to date.

Why TVA sees stellarator fusion as critical for meeting America’s rising power demand

For TVA, which supplies electricity to nearly 10 million people across seven Southeastern states, the pursuit of advanced nuclear technologies is no longer a distant experiment—it is becoming a strategic necessity. Data center construction is accelerating throughout the Tennessee Valley, with hyperscale operators drawn by cheap land, proximity to fiber routes, and access to carbon-free energy. Industry analysts have projected that the rise of AI model training clusters, quantum computing platforms, and semiconductor fabs could triple the region’s power demand by the early 2030s.

Fusion power, once dismissed as perpetually “30 years away,” is now seen by TVA executives as a potentially timely solution. Type One Energy’s stellarator concept promises continuous, steady-state fusion reactions using magnetic confinement fields shaped to maintain plasma stability without the pulsed operation constraints of tokamak systems. This continuous mode of operation aligns well with TVA’s need for always-on baseload capacity, unlike intermittent renewables or natural gas turbines subject to volatile fuel prices and emissions caps.

According to TVA President and CEO Don Moul, the agency is deliberately positioning itself at the forefront of fusion commercialization to futureproof its generation fleet. Analysts suggest TVA’s decision also reflects pressure from federal energy planners to diversify nuclear portfolios as existing fission reactors age and permitting hurdles for new large-scale fission units mount.

How Type One Energy aims to accelerate fusion commercialization with Infinity Two

Type One Energy, a Wisconsin-based fusion startup, has built its reputation on reimagining stellarator architecture to slash manufacturing complexity and cost. Traditional stellarators, like Germany’s Wendelstein 7-X, have demonstrated exceptional plasma stability but at the price of extremely intricate, expensive magnet geometries. Type One Energy’s approach uses modern additive manufacturing and advanced computational optimization to produce modular, simpler coil assemblies that can be fabricated with today’s industrial supply chains.

Infinity Two, its proposed first-generation commercial plant, would deliver around 350 megawatts of continuous power—enough to supply more than 250,000 homes—without greenhouse gas emissions or long-lived nuclear waste. Crucially, the company plans to build it using existing high-temperature superconductors, off-the-shelf industrial components, and proven cryogenic systems, bypassing the need for exotic new materials that often delay fusion projects.

Type One Energy CEO Christofer Mowry has said the LOI with TVA creates a pathway for the utility not just to host the plant but also to develop operator training facilities on-site. That workforce pipeline element could become a key differentiator, as fusion projects worldwide face a looming shortage of skilled technicians and engineers with experience in both nuclear operations and superconducting systems.

What economic ripple effects Tennessee could see from becoming a fusion power pioneer

If Infinity Two moves forward, it could transform the economic landscape of eastern Tennessee. The project site at TVA’s decommissioned Bull Run Fossil Plant already has heavy grid interconnections, a skilled energy workforce, and proximity to Oak Ridge National Laboratory, which has decades of expertise in plasma physics and superconducting magnet research.

Governor Bill Lee has framed the initiative as part of Tennessee’s campaign to lead the United States in “safe, clean, and reliable energy.” The state has already seen major investments in electric vehicle battery plants, nuclear component manufacturing, and small modular reactor (SMR) supply chains, creating a synergistic environment for advanced energy ventures. Analysts expect a commercial fusion plant could generate thousands of construction jobs, hundreds of permanent engineering and operations roles, and a new cluster of supplier activity spanning cryogenics, vacuum systems, and high-precision manufacturing.

Economic development groups in the Tennessee Valley region are also positioning to attract data center operators eager to co-locate next to zero-carbon baseload power sources. If Infinity Two proves viable, it could anchor an energy-tech corridor that further accelerates Tennessee’s industrial growth and elevates its position in the national energy grid.

What hurdles remain before TVA can make a final investment decision on Infinity Two

Despite the excitement, significant hurdles must be cleared before construction can begin. The LOI is non-binding and subject to TVA Board approval, regulatory review by the U.S. Nuclear Regulatory Commission and Department of Energy, and alignment with TVA’s least-cost planning mandates. Financing also remains unresolved. Although TVA has the balance sheet strength to fund megaprojects, analysts expect it will likely seek a public-private partnership structure to share risk, potentially with federal loan guarantees or advanced nuclear tax credits.

Moreover, the project’s success depends on Type One Energy demonstrating net energy gain and robust component durability at pilot scale. Fusion systems operate under extreme thermal and neutron flux conditions, which can degrade materials and erode performance over time. Even with promising stellarator data from European labs, commercial-scale reliability remains unproven.

Industry observers note that global competition is intensifying. Private fusion companies like Commonwealth Fusion Systems, Helion Energy, and TAE Technologies are pursuing alternative confinement concepts and aggressively courting institutional investors. TVA’s move therefore signals confidence that Type One Energy’s approach can achieve faster commercialization and lower technical risk than its peers—a bet that could elevate Tennessee as the vanguard of America’s fusion sector if successful.

How investor sentiment and sector dynamics could shape the path forward for fusion energy

Although Type One Energy is privately held and not yet publicly listed, TVA’s move has attracted attention from institutional investors tracking the broader nuclear and clean energy sectors. Publicly traded fusion-adjacent companies—such as General Electric (NYSE: GE), which supplies power turbines, and Constellation Energy (NASDAQ: CEG), the largest U.S. nuclear operator—saw modest upticks in trading volumes following the announcement, reflecting speculative interest in potential future supply chain contracts.

Market analysts suggest that if Infinity Two advances to construction, it could trigger a wave of capital inflows into fusion startups, similar to the surge in SMR funding following the Department of Energy’s early support for NuScale Power (NYSE: SMR). Hedge funds and sovereign wealth funds have been quietly building positions in advanced energy infrastructure assets, betting on long-term decarbonization mandates and rising electricity demand from AI data centers.

Institutional sentiment currently skews cautiously optimistic, with buy-side analysts signaling a “wait and see” approach pending TVA’s regulatory filings. While there are no FII/DII flow disclosures for Type One Energy as a private company, energy-sector ETFs holding nuclear suppliers have reported net inflows over the past quarter, suggesting retail and institutional investors are positioning for a possible nuclear renaissance.

TVA’s partnership with Type One Energy represents one of the boldest bets yet on bringing fusion power into the commercial era. If the Infinity Two project proceeds, it could place Tennessee at the heart of a new energy revolution—one defined not by incremental emissions cuts, but by virtually limitless clean power. As America scrambles to build the energy backbone for an AI-driven economy, the Tennessee Valley could soon become the launchpad where fusion energy finally makes the leap from theoretical breakthrough to industrial reality.