Realta Fusion has spent the last two years looking for somewhere to build its research and development facility. In the end, it decided the old Oscar Meyer factory in Madison, Wisconsin.

“From sausages to fusion,” Kieran Furlong, co-founder and CEO of Realta Fusion, told TechCrunch with a chuckle. The new center, called Forge, will create its first plasma in 2029, he said. Realta recently showed that it could convert energy from fusion reactions directly into electricity, potentially easing the path to a commercial power plant.

The Oscar Meyer site’s ample power was attractive, as was its proximity to Realta’s existing headquarters in Madison. But what ultimately pushed the startup to stay was bipartisan support from the state’s government, including the governor and the legislature.

“Wisconsin really decided they want to throw their weight behind fusion,” Furlong said.

For the state, the timing could be fortuitous. Fusion power has been on an upswing as demand for electricity surges on the back of economy-wide electrification and proliferating AI data centers. This year alone, fusion power startups have raised over $1.5 billion.

Realta Fusion will receive estimated $55 million in incentives from the state of Wisconsin and the city of Madison. The startup also has deep roots in the city, having been spun out of an experiment at the University of Wisconsin-Madison. And the university graduates a number of talented plasma physicists annually, providing a deep pool of talent. Shine, another fusion company, is located in a nearby suburb.

Realta’s decision to stay in Wisconsin is also surprising given that most fusion startups have located themselves near a national laboratory or on one of the coasts. Another Wisconsin-grown fusion startup, Type One Energy, decamped to Tennessee in 2024.

Since then, Wisconsin has embraced fusion power. Republicans and Democrats supported a sales tax exemption for the fusion industry, which was signed into law in April. That one measure alone will save Realta an estimated $37.5 million, a significant chunk of the total $55 million package. The state is kicking in another $15 million in enterprise zone tax credits, while the city of Madison has offered $2.8 million in tax increment financing.

While other states might have pitched similar amounts, Furlong said that there were other, intangible benefits to remaining in Wisconsin.

“It’s also advantageous to be the state champion,” he said. “We get the attention of people who matter, who can help us, who want to see Realta succeed and want to see Wisconsin be a major hub for fusion.”