News Release

California’s fusion energy industry could bring $125B, 40K jobs to the state

The PISCES research program at UC San Diego, led by George Tynan, is critical to the development and success of magnetic confinement fusion.

October 20, 2025 -- The fusion energy industry in California has the potential to support more than 40,000 jobs and bring $125 billion to the state economy in the next decade - with the right support. This is the finding of a report quantifying the economic impact of California’s fusion energy industry released by the San Diego Economic Development Corporation. 

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.

One key aspect required to successfully achieve commercial fusion energy is a workforce able to meet the demands of the growing industry - at all levels. 

Student researchers in Prof. Javier Garay's lab are working to advance laser-based inertial confinement fusion schemes.

"Fusion’s future workforce cannot rely solely on scientists. Engineers and physicists are crucial, but we need to develop technicians and trade professionals as well to ensure California builds a complete, scalable ecosystem,” said Javier Garay, founding director of the Fusion Engineering Institute at UC San Diego and a professor of Mechanical and Aerospace Engineering. “Universities, community colleges, and vocational programs must work hand-in-hand to meet this demand.” 

Mike Campbell, professor of practice in the UC San Diego Jacobs School of Engineering’s Department of Mechanical and Aerospace Engineering and co-director of the Fusion Engineering Institute, added that the fusion industry in California is at a critical juncture.

“Fusion is having its Silicon Valley moment,” said Campbell. “What happens in the next three to five years will decide whether California owns the industry or watches it leave.” 

Researchers at UC San Diego are doubling down on both the research and workforce development efforts needed to bring fusion energy to fruition. Faculty across campus lead world-renowned labs working to advance both magnetic and inertial confinement fusion schemes. In 2024, the Jacobs School of Engineering launched the campuswide Fusion Engineering Institute, focused on meeting the engineering challenges that must be addressed for commercially attractive fusion. The institute is another step toward deepening both research collaborations and workforce development efforts across the UC system and with national labs, startups and industry partners around the state and nation. 

Earlier in 2025, UC San Diego partnered with General Atomics to establish a Fusion Data Science and Digital Engineering Center in San Diego. This center is the latest in a long string of collaborations between General Atomics and UC San Diego. It sets the stage for even deeper partnerships in advanced digital engineering, artificial intelligence, machine learning, and high-performance computing as part of a multi-step effort to fast-track fusion energy development while reinforcing California’s leadership in fusion research and innovation.

“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 in the fusion report. “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 full EDC report is available here. It was underwritten by General Atomics, with research contributions by Boston Consulting Group and sponsorship by B3K Prosperity, LLNL, Livermore Lab Foundation, Mintz, and ML Strategies

Media Contacts

Katherine Connor
Jacobs School of Engineering
858-534-8374
khconnor@ucsd.edu