Global Investment in Nuclear Fusion Reached US$7 Billion in 2024 as Enterprises and Industries Seek Efficient Energy Alternatives

According to a new report from global technology intelligence firm ABI Research, 3Q 2024 was a particularly good quarter for nuclear power, with overall investment in fusion reaching a record US$7 billion and hype beginning to build around the use of Small Modular Reactors (SMRs) for industrial applications – especially data centers, which are increasingly energy-hungry.

“Nuclear fusion and SMRs are just one of many energy alternatives enterprises and industries are looking into. The adoption of renewables also continued apace in 2024, with China installing more solar and wind than the rest of the world combined between March 2023 and March 2024. These sources now account for 37% of total Chinese power capacity – 758GW – with a further 339GW currently in construction stages,” explains Daniel Burge, Smart Energy for Enterprises and Industries Analyst at ABI Research. In Europe alone, cheap solar PV units facilitated a YoY growth of 15% in the continent’s solar output. Meanwhile, emergent technologies have played an increasingly important role in the wider market, from adopting Artificial Intelligence (AI)-enabled monitoring for renewable assets to using drones in operations at offshore wind farms.

The urgent need for grid expansion – a major topic this year – has stimulated large global projects. In 3Q, the Commonwealth Government approved the Australian component of the Australia-Asia Powerlink, intended to provide up to 6GW of electricity to clients in Darwin and Singapore. Engie, a French utility firm, began construction on an 800MWh battery park in Belgium, while U.S.-based Intersect Power secured funding for its 1GWh of Texan battery storage projects. Grid types have also diversified, with over 21,000 microgrids now in operation - nearly half of which are in Sub-Saharan Africa. Meanwhile, some vendors announced innovative new approaches, with Star Catcher, a U.S. start up, securing funding to construct the world’s first space-based energy grid.

“Agriculture, data center, construction, manufacturing, and mining industries renewed their interest in novel energy approaches, from Enel North America signing the largest U.S. solar grazing contract to Microsoft signing a historic PPA to purchase energy for data centers from the Three Mile Island nuclear plant. Interest in ever ‘smarter’ approaches to energy remains strong heading into 2025,” Burge concludes.

These findings are from ABI Research’s Smart Energy for Enterprises & Industries Quarterly Update: 3Q 2024 report. This report is part of the company’s Smart Energy for Enterprises and Industries research service, which includes research, data, and ABI Insights.