
In WA's desert, fusion power races to meet AI demands. Who pays if it fails?
News ClipThe Seattle Times·Malaga, Chelan County, WA·4/26/2026
Microsoft is constructing a large data center campus in Malaga, Chelan County, Washington, which demands significant electricity. Helion, a startup, plans to build a commercial fusion power plant nearby by 2028 to power Microsoft's data centers, though experts are skeptical. This development highlights increasing concerns about data center energy consumption and growing local opposition in Washington state.
electricityenvironmentaloppositionmoratoriumgovernmentannouncement
Microsoft
Gov: Chelan County Public Utility District, Puget Sound Energy, Bonneville Power Administration, City of Seattle
Microsoft is constructing a substantial data center campus in Malaga, Chelan County, Washington, requiring an immense amount of electricity amid a global race for artificial intelligence dominance. To address this significant power demand, Microsoft has partnered with Helion, an Everett-based fusion startup, which is developing what it hopes will be the world's first commercial fusion power plant adjacent to the data center site. Helion faces a contractual deadline to begin supplying power to Microsoft by 2028, a target that nuclear experts view with skepticism given the unproven commercial viability of fusion technology.
Critics, including University of Michigan researcher Tom Lyon, have accused Microsoft's deal with Helion of being "greenwashing," suggesting it's more about public relations than a realistic energy solution. Scientists like George Tynan from UC San Diego also express skepticism due to Helion's lack of transparency regarding its technical progress. Despite these doubts, Helion CEO David Kirtley insists the 2028 deadline is achievable and crucial for meeting global demands for clean, baseload power.
The article highlights broader concerns across Washington state regarding data center electricity consumption. In Seattle, Mayor Katie Wilson is considering a moratorium on new data center projects due to strong public backlash. Utilities in Grant County and Chelan County have also expressed worries about the strain on the power grid and potential rate increases for residents. While Chelan County Public Utility District (PUD) has assured residents that Microsoft's data centers will not increase local rates by requiring the company to build its own infrastructure and eventually source its own power, the competition for renewable energy from tech giants like Microsoft and Amazon is driving up electricity costs for utilities and ratepayers statewide, including in the Puget Sound area.