Fusion startups are inking defense-related deals, reigniting the relationship between fusion and national security that might have gone dormant, but never completely disappeared.

Proxima Fusion said Wednesday it plans to build a €140 million ($162.6 million) factory to produce fusion-grade high-temperature superconducting (HTS) tape, which will provide the startup with key component to its reactor design.

Fusionality is developing control systems and simulation environments to help fusion power startups move faster.

The grid has been straining under the weight of new AI data centers, and that has utilities courting fusion startups.