Google signs 400 MW geothermal PPA with Fervo for Utah data center

Author: Tim De Chant Source: TechCrunch

Geothermal energy company Fervo has secured another major milestone, with Google agreeing to purchase nearly half a gigawatt of electricity to power a planned new data center in Utah.

The power purchase agreement, announced Tuesday, commits Google to buying 396 megawatts from Fervo's Cape Station power plant in Utah, which is expected to come online in 2028. Google also holds an option through June 2030 to purchase an additional 600 megawatts.

Context and Strategic Importance

The deal comes as Google and other hyperscalers are actively searching for new electricity sources across the country. For years, Google has been one of the largest purchasers of clean energy in the U.S. and abroad, buying electricity from wind, solar, and battery storage to support its commitment to reach net-zero emissions by 2030.

However, that goal became more challenging in April, after Google signed a deal with data center developer Crusoe for 933 megawatts of natural gas power in Texas. The Fervo agreement could help Google fuel its AI ambitions without significantly jeopardizing its net-zero target.

Development Potential at Cape Station

Fervo is permitted to develop up to 2 gigawatts of geothermal energy at Cape Station. However, Sarah Jewett, Fervo's senior vice president of strategy, told TechCrunch in May that a third-party engineer estimated the site holds enough heat to generate twice as much electricity.

If fully developed, those 4 gigawatts would roughly double the entire geothermal generating capacity in the United States, according to a recent U.S. Department of Energy report. It is possible that Google's gigawatt-scale deal could grow even larger if Fervo's operations proceed as planned.

Enhanced Geothermal Technology

Enhanced geothermal technologies, such as those developed by Fervo, can access deeper sources of heat. According to the DOE report, the U.S. could generate up to 57 terawatts of electricity using these technologies.

Long-Standing Partnership

Fervo and Google's new deal builds on a relationship spanning more than five years. Google previously purchased some of Fervo's first electrons and recently invested in Fervo's last funding round before the geothermal startup went public.

Market Reaction

Although Fervo's stock rose on its first day of trading, it later shed those gains and more over the following months. News of the Google deal drove the stock up approximately 30% yesterday, before traders took some profits today.

Image Credit: Fervo Energy