Israel targets nuclear fusion leadership as AI drives soaring energy demand

Israel could become a global leader in nuclear fusion technology, according to a strategic report released Thursday by the Policy Planning and Strategy Division and Chief Scientist’s Unit of Israel’s Energy and Infrastructure Ministry.

The report identifies an opportunity for Israel to develop technologies for the emerging fusion industry, meet growing electricity demand driven in part by AI data centers and other advanced technologies, and generate future export revenue.

Nuclear fusion is widely viewed as a promising potential source of low-carbon energy, although commercial power generation at scale has yet to be achieved.

The ministry aims to position Israel to play a significant role in the industry by leveraging the country’s existing technological expertise, research institutions and defense-sector capabilities.

Unlike conventional nuclear fission reactors, which generate energy by splitting heavy atomic nuclei such as uranium, fusion produces energy by combining light nuclei, typically hydrogen isotopes, to form heavier nuclei.

The process could offer a source of electricity with low carbon emissions and potentially less long-lived radioactive waste than conventional nuclear fission. However, significant technical and engineering challenges must still be overcome before fusion can become a commercially viable source of power.

Conventional nuclear power has faced public opposition and stringent regulation, in part because of concerns about radioactive waste and the risks highlighted by major accidents at Three Mile Island in the United States, Chernobyl in Ukraine and Fukushima in Japan.

Fusion could avoid some of the risks associated with fission, although it would still require rigorous safety standards and regulatory oversight.

The ministry’s report argues that developing fusion technology could deliver substantial economic benefits for Israel while strengthening its international partnerships. It also warns that the country must move quickly, as advances in fusion research and development could accelerate over the coming years.

Establishing appropriate regulatory frameworks, developing supply chains and investing in research infrastructure will be essential if Israel hopes to secure a meaningful position in the industry.

The global race to develop fusion energy is attracting growing interest from major technology companies seeking reliable electricity supplies for energy-intensive operations, including AI data centers.

Microsoft and Google have pursued arrangements to support emerging energy technologies, including fusion, as companies explore ways to meet future electricity needs.

The ministry expects private fusion projects in the United States to begin supplying electricity to the national grid by the mid-2030s. Israel, it argues, has an opportunity to develop its own capabilities while supplying technologies and expertise to the international fusion industry.

Potentially relevant Israeli technologies include high-powered laser systems, power electronics, radio-frequency technologies, artificial intelligence, advanced computer simulations, specialized materials and robotics. These fields could support different approaches to fusion research and reactor development.

Israel’s defense industry has also developed expertise in several of these areas, while academic and research institutions could help build the scientific and technical workforce needed to advance the sector.

The ministry’s Institute for Nuclear Fusion and Hot Plasma Research, along with facilities such as the SARAF particle accelerator and the Soreq Nuclear Research Center, are part of the country’s broader research ecosystem.

"Against the backdrop of continuously growing energy demand and the need for clean, reliable and readily available electricity, nuclear fusion has the potential to be a genuine breakthrough," declared Dr. Shahar Dolev, a senior official in the ministry's Policy Planning and Strategy Division.

"Based on our analysis of industry trends, technological developments and Israel's comparative advantages, it appears that we are standing on the threshold of an extraordinary strategic opportunity: to join the global race to develop nuclear fusion today, secure a meaningful position in the industry's global value chain and establish Israel as a leading technological power in this field," Dolev explained.