From statewide leadership to regional execution: San Diego’s role in fusion’s next chapter

California is a global leader in fusion research and development. As detailed in EDC’s 2025 statewide study on fusion energy, California is home to 16 core fusion companies—more than one-third of all U.S.-based fusion firms—and its growing fusion energy industry is supported by world-class universities and national laboratories that have attracted more than $2.2 billion in public and private funding, anchored by San Diego’s fusion energy expertise. Together, these assets put California in pole position for realizing the potential of fusion energy.

Sustaining that leadership—and translating it into energy production—will depend not only on statewide leadership and investment, but on the ability of individual regions within California to position themselves as specialized hubs for commercialization. Fusion’s path forward will be inherently place-based, requiring access to talent, regional supply chains, and pilot-scale infrastructure necessary to move from demonstration to deployment. Within this landscape, San Diego stands out as one of California’s most critical regional hubs.

Fusion pedigree with global reach

In San Diego, the fusion energy industry already generates more than $442 million in annual economic output and supports more than 1,600 regional jobs—evidence of a mature foundation for continued growth as fusion technology progresses toward commercialization. Our region further distinguishes itself by the breadth of our fusion capabilities, with strong legacy of companies, talent, and R&D supporting both magnetic and inertial confinement, the two primary fusion approaches. Combined, these assets position San Diego as a cross-cutting fusion hub.

At the center of San Diego’s fusion ecosystem is General Atomics, whose decades-long presence has shaped both national and international fusion progress. The company plays a central role across the world’s fusion landscape, supplying the components, systems, and diagnostics critical to both fusion industry partners and national laboratories.

In San Diego, General Atomics operates DIII-D, North America’s largest tokamak reactor, on behalf of the U.S. Department of Energy. A critical magnetic fusion research facility, DIII-D serves as a global collaboration platform that produces scientific insights and technological advances to support fusion development.

General Atomics’ fusion capabilities extend further through its Poway-based magnet facility, where it developed and built the world’s largest, most powerful pulsed superconducting magnet for recent installation at ITER, a 35-nation collaborative effort toward power plant scale fusion energy located in France. The expertise demonstrated at this facility represents a potential resource for developing future fusion blankets—the systems that surround the fusion reaction and convert its energy into usable heat while protecting the reactor, which are critical components across most fusion power plant designs. As fusion technologies progress toward pilot-scale deployment, sites like General Atomics’ magnet facility will become increasingly valuable in addressing both scientific and engineering challenges to commercialization.

San Diego’s highly-skilled fusion talent pipeline

Talent is critical to fusion’s development and commercialization. A strong academic pipeline anchored by UC San Diego complements our region’s industrial assets, offering established strengths in engineering, plasma physics, and materials science that support both fusion technology research and a skilled emerging workforce.

UC San Diego’s Jacobs School of Engineering, a top 10 U.S. engineering school that graduates about 3,000 students each year, houses the university’s Fusion Engineering Institute which brings together interdisciplinary teams to address complex technical challenges. At the same time, UC San Diego’s collaborative efforts such as its Fusion Data Science and Digital Engineering Center—led jointly with General Atomics—apply advanced computation, artificial intelligence, and digital engineering to accelerate fusion testing and development timelines.

This kind of cross-institutional collaboration reflects San Diego’s interconnected ecosystem and is increasingly essential as fusion companies move toward commercialization.

Hurdles to scale: Competing in a rapidly evolving national landscape

As fusion technologies move closer to commercialization, regions across the U.S. are beginning to compete on more than research capabilities alone. Local and state governments are increasingly deploying economic and regulatory tools to attract fusion companies—and their growing economic impact—as they transition from research to deployment. These tools include property tax abatements, accelerated environmental review planning, coordination with local utilities, and, in California, the establishment of recent California Environmental Quality Act (CEQA) exemptions that protect permitting timelines from costly legal challenges and signal regulatory clarity to fusion companies.

In San Diego, we have the opportunity to learn from other regions’ wins. Albuquerque City Council’s recent approval of a major incentive package for California-based Pacific Fusion—along with similar efforts by other regions, including Virginia’s recent success in securing the move of MIT-rooted Commonwealth Fusion Systems—illustrates both the scale and impact of the tools available to local municipalities and underscores that the race for fusion is underway.

San Diego cannot rest on its laurels; we must proactively address the challenges that inhibit the building of test facilities and pilot plants. Our region has an opportunity to build for the future, to both maintain our leadership position and capture the emerging economic benefits of fusion commercialization.

Translating strength into impact

The good news: San Diego is entering the fusion energy race with clear advantages. We have a dynamic innovation economy, a strategic position in the fusion supply chain, world-renowned institutions, and a robust, highly-skilled talent pipeline. We can learn from other regions’ wins and losses, strengthening the local infrastructure, incentives, and partnerships critical to fusion companies’ success in San Diego.

But turning scientific leadership into lasting economic value will also require a statewide policy environment that makes it easier to build, scale, and integrate fusion energy projects. That is exactly the role programs like California Jobs First are designed to play: Helping regions like San Diego align workforce training, infrastructure investment, and economic development strategies so emerging industries like fusion translate into high-quality jobs, more resilient local supply chains, and broadly-shared prosperity. Here, California has the opportunity to invest in this fast-growing sector to strengthen both our economic and our long-term climate resilience.

With statewide investment and momentum, San Diego will be able to double down on the opportunities most critical to the fusion energy industry—from workforce development to streamlined siting, permitting, and grid readiness—to ensure our region captures the full economic benefit of fusion’s next chapter.

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Study: CA’s $125B fusion energy potential could support 40K jobs, power the future

In October 2025, San Diego Regional EDC released “Catalyzing CA’s Fusion Advantage: Roadmap to Commercialization,” an interactive web report quantifying the economic impact of California’s fusion energy industry and exploring its potential to support more than 40,000 jobs and $125 billion to the state economy.

With electricity demand rising and climate targets tightening, the world is facing an impending energy crisis. These challenges, combined with grid instability and geopolitical vulnerability, have underscored the need for groundbreaking commercial technologies, as well as coordinated policy and regulatory frameworks to harness the state’s full potential.

The same process that powers the sun, fusion energy has long been considered the “holy grail” of power: A clean, safe, and virtually limitless source of baseload electricity. It offers high power density, no carbon emissions, minimal and short-lived radioactive waste, no risk of meltdown, and 24/7 reliability.

California has already begun to establish itself as a global leader in the fusion energy industry. The presence of industry titans such as General Atomics and TAE Technologies, coupled with world-leading R&D institutes like Lawrence Livermore National Laboratory (LLNL) and UC San Diego’s fusion cluster, positions the state as one of the world’s most promising regions for fusion commercialization. These institutions also host two of the nation’s most significant fusion research facilities—General Atomics’ DIII-D, the only operational fusion user facility in the country, and LLNL’s National Ignition Facility, where the first successful ignition proved that fusion energy is possible.

“With the right support, California can lead the in the commercialization of fusion energy, capturing the economic benefits that come from it while reshaping the global energy landscape,” said Eduardo Velasquez, Sr. Director of Research and Economic Development at San Diego Regional EDC, the report’s author. “EDC’s report brings into focus the regions, firms, and talent currently driving the industry, as well as the opportunities and hurdles the state faces in scaling from fusion R&D hub to a production powerhouse.”

Informed by nearly two dozen executive interviews with fusion business leaders, academia, and local governance, the report—available at fusionCA.org—dives deep into current industry strengths, future growth scenarios, and policy recommendations needed to drive industry competitiveness in California.

KEY FINDINGS

  • California leads the nation in fusion energy development. The state boasts 16 core fusion companies—more than one-third of all U.S.-based fusion companies—and has captured more than $2.2 billion in cumulative private and public funding since tracking began.
  • The fusion industry already generates significant economic impact—with even more high-growth potential. Currently, fusion energy accounts for approximately 4,700 jobs across California and generates $1.4 billion in annual economic output. The industry has the potential to grow to between $48 billion and $125 billion, depending on successful commercialization and state policy decisions.
  • California excels in research but faces commercialization challenges. The state’s world-class universities, national laboratories, and private investment ecosystem position California as the global leader in fusion R&D. However, barriers such as regulatory uncertainty, high land costs, grid interconnection delays, and lack of fusion-specific policy frameworks threaten California’s ability to retain companies as they transition from R&D to commercial deployment.
  • Maintaining fusion leadership requires strategic policy measures and state support. Success depends on recognizing fusion as ‘clean energy’ under state law, establishing clear regulatory pathways, preparing appropriate sites for establishing commercial research centers and fusion energy plants, and creating coordinated policy support. Without decisive action, California risks losing fusion companies to other states offering more favorable commercialization conditions.

“As a leader in climate resilience, California has been at the cutting edge of energy transition strategies and innovation for decades. Now, as fusion presents such clear economic opportunity, our state must build a long-term policy roadmap that prioritizes and incentivizes research, commercialization, workforce development, and investment to further position us to lead in the global energy transition,” said California Senator Catherine Blakespear, Chair of the Environmental Quality Committee.

“We’re proud to play a key role in advancing fusion energy here in San Diego while collaborating with partners such as the State of California, the City of San Diego, the Department of Energy, the University of California system, and national laboratories,” said Anantha Krishnan, senior vice president for the General Atomics Energy Group. “To realize our region and state’s full potential, California companies will need financial incentives, regulatory support, and streamlined land-zoning processes. In addition, public-private collaborations to build test facilities and train the future fusion workforce will be critical to achieving success in commercializing fusion energy.”

The report was underwritten by General Atomics, with research contributions by Boston Consulting Group and sponsorship by B3K Prosperity, LLNL, Livermore Lab Foundation, Mintz, ML Strategies, and Tokamak Energy, and unveiled at a press conference and industry reception October 9. Congressman Scott Peters, Senator Catherine Blakespear, and other leaders across the state were in attendance.

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