Google and Fervo Energy sign record 396 MW geothermal deal for Utah data center
Google signed a landmark 396-megawatt enhanced geothermal power purchase agreement with Fervo Energy on September 1, 2026, the largest such deal on record. The carbon-free electricity will come from Fervo's Cape Station project in southwestern Utah, expected online in 2028, with an option to expand to nearly 1 gigawatt by 2030. The deal aims to power a potential Google data center in Utah and builds on a prior partnership. Fervo shares surged over 28% on the announcement.
Editorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page itself is projected from evidence records.
- Current automated evidence projection
Cross-source coverage
Wire timeline
Fervo Energy's enhanced geothermal project aims to unlock gigawatts for data centers
Fervo Energy's Cape Station project in Milford, Utah, is on track to become the first enhanced geothermal system in the U.S. to reach commercial operation, sending power to the grid next month. The company, which went public in May 2026 and signed a new power purchase agreement with Google, aims to prove that enhanced geothermal can provide cost-competitive, emissions-free baseload electricity at scale. CEO Tim Latimer noted a dramatic shift in power demand driven by hyperscalers and data centers, contrasting with the stagnant grid growth when the company was founded in 2017. Fervo has amassed nearly 600,000 acres of geothermal rights across the Western U.S., acquiring land at an average of $4 per acre that now sells for over $400 per acre. The project uses oil and gas drilling and hydraulic fracturing techniques to create reservoirs in hard granite more than two miles deep, aiming to unlock dozens of gigawatts of clean power to meet rising U.S. electricity demand.
Google buys 400 MW of enhanced geothermal power from Fervo for Utah data center
Google has signed a power purchase agreement with geothermal energy company Fervo to buy 396 megawatts of electricity from Fervo's Cape Station power plant in Utah, with an option to purchase an additional 600 megawatts through June 2030. The deal, announced on September 2, 2026, is intended to power a planned new data center in Utah and support Google's AI ambitions without significantly jeopardizing its net-zero emissions goal by 2030. This agreement follows Google's April 2026 deal for 933 megawatts of natural gas power, which made its net-zero target harder to reach. Fervo's enhanced geothermal technology can tap deeper heat sources, and the U.S. Department of Energy reports the country could generate up to 57 terawatts of electricity using such technologies. The companies have collaborated for over five years, with Google previously investing in Fervo's funding round before the startup went public in May 2026. Fervo's stock rose about 30% on the news before some profit-taking.
Fervo-Google geothermal deal underscores baseload power scarcity for AI data centers
Enhanced geothermal company Fervo Energy announced a 396-MW power purchase agreement with Google, the largest-ever geothermal PPA, with an option to expand by approximately 600 MW for a total of nearly 1 GW by June 2030. Google plans to use the power as a foundational building block for a potential data center in Utah. The deal supports Fervo's Cape Station project in Southwestern Utah, expected online in 2028. Analysts at William Blair noted the PPA increases Fervo's contracted revenue by about 65% and strengthens their 'baseload imperative' thesis for AI data centers. However, Fervo's stock has struggled, down 49% from IPO highs, with analysts citing a 'heavy investment phase' and transmission curtailment issues. The partnership builds on a 2021 corporate agreement, a 2023 Nevada pilot, a 2024 115-MW PPA with Google and NV Energy, and Google's participation in Fervo's $462 million Series E funding round in December 2025.
Show 8 older updatesHide older updates
Fervo Energy signs 396MW geothermal PPA with Google for Utah data center power
Fervo Energy has signed a 396MW power purchase agreement (PPA) with Google, the world's largest enhanced geothermal PPA to date, to support the Cape Station enhanced geothermal systems (EGS) project in Beaver County, Utah. The project is expected to begin operations in 2028. The electricity purchased by Google will support its carbon-free power needs and could serve as the foundation for a data center in Utah. Fervo Energy also granted Google an option to expand offtake by roughly 600MW, potentially bringing the total to nearly 1GW by June 2030. The PPA aims to introduce around-the-clock power capacity at no added cost to existing ratepayers. The partnership began with Project Red in Nevada, which became operational in 2023. In June 2024, Fervo signed a 115MW PPA with Google and NV Energy. Fervo Energy CEO Tim Latimer emphasized that enhanced geothermal is ready to power next-generation computing infrastructure, while Google's head of advanced energy Michael Terrell highlighted the project's economic benefits and potential to reduce energy costs.
Bill Gates-Backed Fervo Energy Signs Major Geothermal Deal with Google for Data Center
Fervo Energy, a geothermal startup backed by Bill Gates' Breakthrough Energy Ventures, announced a deal to sell nearly 400 megawatts of power to Google for a potential data center in Utah. The company uses oil and gas fracking methods to develop geothermal energy and plans to start providing energy from its Cape Station project in 2028. The deal highlights how AI data center buildouts are boosting demand for clean, reliable energy, benefiting companies like Fervo, Generac, and Comfort Systems. Fervo's stock rose 28% on the news, though shares remain 46% below their May IPO price due to concerns about spending and transmission constraints. The article also notes Gates' broader investments in climate startups, including nuclear power firm TerraPower, which is reportedly planning a new data center project.
Fervo Energy Soars 28% on Google Power Deal; Hedge Fund Interest Rises
Fervo Energy (NASDAQ:FRVO) shares surged 28.41% to close at $19.75 after announcing a new power purchase agreement (PPA) with Google. The deal will supply 396 megawatts of geothermal power from Fervo's Cape Station project in Utah to support Google's data center development. Google has an option to expand offtake by an additional 600 MW, potentially reaching 1 GW by 2030. The agreement expands on a prior partnership in Nevada. Fervo reported Q2 revenues of $113 million, up from zero a year earlier, though net losses widened to $55.9 million. The company, which listed in May 2026, has attracted significant hedge fund interest, with 53 funds holding $691 million in shares. Major investors include Value Aligned Research Advisors, Scopus Asset Management, and Citadel Investment Group.
Fervo Energy Surges 28% on 396-Megawatt Google Power Deal for AI Data Centers
Fervo Energy (NASDAQ:FRVO) shares surged 28.41% to close at $19.75 on September 1, 2026, after announcing a 396-megawatt power purchase agreement with Alphabet's Google. The deal, which includes an option for Google to expand by an additional 600 MW to nearly 1 GW by 2030, will see Fervo supply power from its Cape Station project in Utah starting in 2028. Google plans to use the 24/7 carbon-free geothermal energy for a potential AI data center in the state, pending regulatory approvals. Trading volume spiked to 35 million shares, 851% above the three-month average. The broader market declined, with the S&P 500 down 0.70% and Nasdaq down 1.03%, while clean-energy peers Ormat Technologies and NextEra Energy also rose. Fervo, which IPO'd in 2026, remains down 46% from its debut and is considered a pre-revenue stock with inherent volatility tied to project execution and AI demand.
Fervo Energy Stock Surges 28% After Signing Major Geothermal Power Deal with Google
Fervo Energy (FRVO) stock surged over 28% on September 1, 2026, after announcing a landmark 396-megawatt enhanced geothermal power purchase agreement with Alphabet's Google. The deal, the largest of its kind on record, will supply carbon-free electricity for a potential Google data center in Utah through Fervo's Cape Station project, expected online in 2028. Alphabet has an option to expand by an additional 600 MW by June 2030. The partnership builds on a previous collaboration starting in 2023 with Project Red in Nevada. Fervo, which went public in May 2026 raising $2.2 billion, reported only $113,000 in Q2 revenue but plans to develop 1.1 GW of power by 2030. The article highlights how this deal addresses growing community resistance to data centers and rising power demand from AI infrastructure, positioning enhanced geothermal systems as a reliable, round-the-clock clean energy solution for tech companies.
Google Signs Largest Enhanced Geothermal Power Deal with Fervo Energy for Utah Data Center
Google, through its parent company Alphabet, has signed the world's largest enhanced geothermal power purchase agreement with Fervo Energy (NASDAQ:FRVO). The deal will supply 396 megawatts (MW) of electricity from Fervo's Cape Station project in southwestern Utah starting in 2028, with an option to increase purchases to 1 gigawatt (GW) by mid-2030. Fervo's enhanced geothermal system uses hot rock accessible by drilling rather than natural steam reservoirs, enabling broader geographic application. The agreement addresses the challenge tech companies face in securing reliable, clean, around-the-clock power for AI data centers, as solar and wind are intermittent and grid connections face long delays. Fervo shares rose over 25% following the announcement. The deal adds significantly to Fervo's existing $7.2 billion revenue backlog from 658 MW in binding contracts. Fervo reported a net loss of $55.9 million in its first full quarter as a public company and projected up to $900 million in capital expenditures for the second half of 2026.
Fervo Energy signs framework with Google for up to 3 GW of geothermal power
Fervo Energy signed a non-binding framework agreement with Google Energy covering up to 3 GW of enhanced-geothermal capacity through 2033, as reported by the Wall Street Journal. Under the deal, Fervo must propose at least 1 GW of projects during the first two years. The framework establishes priority geographies and a standard contract structure but does not require Google to purchase the full 3 GW or constitute a project-specific power purchase agreement. Google received a right of first refusal over portions of Fervo's near-term pipeline, including expansion capacity in contracted areas and certain uncontracted projects. The arrangement is not exclusive, though Fervo noted in its SEC filing that Google's priority rights could restrict other commercial or financing options. Either party can terminate the agreement in March 2028 if no definitive offtake contract is completed. The framework is separate from Fervo's existing 658 MW of binding PPAs. Fervo is currently building 500 MW across two phases at Cape Station in Milford, Utah, with the first unit mechanically complete and initial power expected in Q4 2026. The company raised about $2.2 billion in its May IPO and has secured project financing totaling $421.4 million.
Fervo Energy and Google sign record 396 MW geothermal power purchase agreement
Fervo Energy signed a landmark 396-megawatt enhanced geothermal power purchase agreement with Alphabet's Google on September 1, 2026, the largest such deal on record. The agreement covers output from Fervo's Cape Station project in southwestern Utah, expected online in 2028, with an option for Google to expand purchases by roughly 600 megawatts by June 2030, potentially reaching nearly 1 gigawatt. The carbon-free electricity is intended to power a potential Google data center in Utah, though final plans depend on engineering reviews and approvals. The deal builds on an existing partnership, including Fervo's Project Red in Nevada (2023) and a 115-megawatt deal in June 2024. Fervo, which raised over $2 billion in its May 2026 IPO, uses oil-and-gas drilling and hydraulic fracturing techniques for geothermal reservoirs. The company's total contracted capacity now stands at about 1,000 megawatts, with other buyers including Shell and Southern California Edison.