Microsoft AI demands more power. Can a WA fusion company supply it?

Microsoft is constructing a massive data center campus in Malaga, Chelan County, Washington, designed to support its rapidly expanding artificial intelligence initiatives. This facility is projected to demand as much electricity as a medium-sized city, raising concerns about power availability and local energy costs. To address this immense power need, Microsoft has entered into a contract with Helion, an Everett-based fusion energy startup. Helion is developing a commercial fusion power plant near Microsoft's data center, aiming to supply electricity by 2028. However, nuclear experts and scientists have expressed considerable doubt about Helion's ability to meet this ambitious deadline, citing the unproven nature of commercial fusion and Helion's lack of transparency regarding its technological progress. The data center's energy demands have triggered broader concerns across Washington. Residents in Chelan County have voiced worries about the impact on local electricity rates and supply, while utilities in Grant County and the Puget Sound area face pressure from increasing demand, potentially driving up costs for existing customers. Seattle Mayor Katie Wilson has even indicated she is considering a moratorium on new data center projects due to strong public backlash. Chelan County Public Utility District officials have sought to reassure residents, stating that Microsoft's data centers will be on a separate grid infrastructure, with the company covering construction costs and eventually being required to generate or import 80% carbon-free power. Microsoft is exploring various power solutions, including a potential natural gas plant in West Texas, as it navigates the energy-intensive expansion of AI amid commitments to become carbon-negative.