Realta Fusion has spent the last two years looking for a place to build its research and development facility. In the end, the former Oscar Mayer factory in Madison, Wisconsin was chosen.

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

The vast power of the Oscar Mayer site was attractive, as was its proximity to Realta’s current headquarters in Madison. But what ultimately propelled the startup to stay was bipartisan support from state government, including the governor and legislature.

“Wisconsin really decided it wanted to support the merger,” Furlong said.

For the State, the timing could be fortuitous. Fusion energy has boomed as demand for electricity increases thanks to economy-wide electrification and the proliferation of artificial intelligence data centers. This year alone, fusion energy startups have raised more than $1.5 billion.

Realta Fusion will receive approximately $55 million in incentives from the state of Wisconsin and the city of Madison. The startup also has deep roots in the city, having emerged from an experiment at the University of Wisconsin-Madison. And the university graduates several talented plasma physicists annually, providing a large talent pool. 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 near a national laboratory or on one of the coasts. Another fusion startup created in Wisconsin, Type One Energy, is moving to Tennessee in 2024.

Wisconsin has since embraced fusion energy. Republicans and Democrats supported a sales tax exemption for the merger industry, which became law in April. That move alone will save Realta approximately $37.5 million, a significant portion of the total $55 million package. The state is providing 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 offered similar amounts, Furlong said there were other intangible benefits to staying in Wisconsin.

“It’s also advantageous to be the state champion,” he said. “We get attention from important people, who can help us, who want Realta to be successful and for Wisconsin to be a major fusion center.”