Google Inks 396MW Geothermal Deal

Fervo Energy has signed a landmark 396-megawatt power purchase agreement with Google to supply geothermal power to a potential data center in Utah. The deal, which is the largest enhanced geothermal power purchase agreement on record, gives Google an option to increase its power purchases by about 600 MW, bringing total potential capacity under the arrangement to nearly 1 gigawatt by June 2030.

The agreement is a significant milestone for Fervo Energy, which has committed more than $2 billion to its Cape Station project in southwestern Utah. The project is expected to come online in 2028 and will provide a reliable source of clean energy to Google's data center.

Fervo and Google have been working together since 2021, when they signed a corporate agreement to develop next-generation geothermal power. The partnership has already borne fruit, with Fervo's Project Red, a commercial pilot project in Nevada, coming online in 2023 and delivering power to the local grid, including Google's data centers in the state.

The deal highlights the growing interest in clean energy sources to power data centers, particularly among tech giants like Google. Geothermal power is an attractive option due to its reliability and minimal environmental impact. In 2022, the European Union had about 1GW of net geothermal electricity capacity, with geothermal supplying 0.5% of EU renewable electricity in 2024.

## Why it matters The agreement between Fervo and Google is significant not only because of its size but also because it underscores the importance of securing clean and reliable energy sources for data centers. As the demand for artificial intelligence and cloud computing continues to grow, the need for steady and clean power will become increasingly pressing. Fervo's enhanced geothermal systems, which can tap into hot rock within drilling reach, offer a promising solution to this challenge.

The deal has also had a positive impact on Fervo's stock, which rose nearly 14% in premarket trading after the announcement. The company's commitment to developing next-generation geothermal power has clearly resonated with investors, who see the potential for significant growth in the clean energy sector.

## What happens next With the Cape Station project expected to come online in 2028, Fervo and Google will be working closely to ensure a smooth transition and to explore opportunities for further collaboration. As the demand for clean energy continues to grow, it is likely that we will see more partnerships like this one, driving innovation and investment in the geothermal sector.