A California fusion energy company has chosen Albuquerque as a top contender for a groundbreaking research facility that could transform the city into a national hub for clean energy innovation.
Pacific Fusion announced this week that Albuquerque is one of two finalists for a $1 billion fusion research facility that would create more than 200 permanent jobs and hundreds of construction positions. The company expects to make a final decision by late September.
The 225,000-square-foot facility would be built in Mesa del Sol and focus on developing fusion energy technology — the same process that powers the sun by combining hydrogen atoms to create massive amounts of clean electricity.
“Albuquerque is an epicenter of advanced technology, and it makes perfect sense that Pacific Fusion would want to be part of our innovation ecosystem,” said Mayor Tim Keller in a statement. “This is a full-circle story, building directly on technology developed at Sandia National Labs.”
The announcement comes as Albuquerque’s technology sector is experiencing significant growth. The city has seen a 37% spike in AI-related job postings, with salaries ranging from $75,000 to $200,000 for relevant fields, according to recent employment data.
New Mexico ranks third nationally in clean energy job growth, expanding at 5.9% with over 13,000 clean energy workers statewide. The state’s clean energy sector is considered a strategic priority for economic development.
Unlike nuclear fission, which splits atoms and creates radioactive waste, fusion combines light atomic nuclei like hydrogen to form heavier elements, releasing enormous amounts of energy with minimal environmental impact. The process produces no long-lived radioactive waste and emits no carbon dioxide.
Pacific Fusion’s approach uses fast electrical pulses to create powerful magnetic fields that compress and heat fuel containers in less than 100 billionths of a second. The company aims to achieve “net facility gain” — generating more energy than the system consumes — a critical milestone for commercial fusion power.
The company’s technology builds directly on breakthrough research from Sandia National Laboratories’ Z Machine, a massive pulse-power facility that has helped advance fusion science for decades.
“New Mexico is a natural fit for this project,” said Keith LeChien, Pacific Fusion’s co-founder and chief technology officer, in a statement. “The Z Machine at Sandia National Laboratories helped lay the foundation for our approach, and the state’s legacy of applied physics innovation, deep talent pool, and business-friendly environment put it in a unique position to become a national leader in fusion energy innovation.”
Pacific Fusion was founded in 2023 and operates from Fremont, California. The company raised more than $900 million in Series A funding in October 2024 from investors including General Catalyst, Breakthrough Energy Ventures, and tech leaders Eric Schmidt and Patrick Collison. The funding uses a milestone-based structure where money is released as the company achieves specific technical goals.
Albuquerque is competing against a location in the California Bay Area, where Pacific Fusion currently operates. The company has been working with the New Mexico Economic Development Department and signed a memorandum of understanding with the state to pursue the project.
“New Mexico is uniquely positioned to become a national leader in advanced energy and innovation, and initiatives like this are turning that potential into reality,” said EDD Secretary Rob Black. “Pacific Fusion is aligned with our priorities for sustainable energy solutions and long-term growth, as well as our commitment to building a future-focused economy that benefits all New Mexicans.”
The proposed facility would be a research center, not a power plant, and would “operate safely and quietly,” according to the company. The project would undergo environmental and planning reviews as part of the approval process.
“Projects like this bring high-quality jobs, drive new investment, create a supply chain, and show the world that our city is serious about building a clean energy future,” said Max Gruner, Albuquerque’s economic development director.