Google has signed a major agreement to purchase 396 megawatts of geothermal power from Fervo Energy, strengthening the technology giant’s push to secure reliable, carbon-free electricity for its growing data-center operations.
The agreement covers power from Fervo’s Cape Station enhanced geothermal systems project in southwestern Utah. The project is expected to begin commercial operations in 2028.
The deal also gives Google an option to increase its purchases by about 600 MW by June 2030, potentially taking the total power commitment to nearly 1 gigawatt.
Fervo’s shares rose nearly 14% in premarket trading after the announcement, reflecting investor optimism about the agreement and the commercial prospects for enhanced geothermal systems.
Google turns to geothermal for data-center power
The agreement comes as technology companies face rapidly rising electricity requirements from artificial intelligence and data centers.
Unlike solar and wind power, geothermal energy can provide electricity continuously, making it attractive to companies that require round-the-clock power for computing infrastructure.
Google said the electricity from Fervo is intended to serve as a foundational source of power for a potential data center in Utah. However, the final location and development of the data center remain subject to engineering reviews, state and local approvals and commercial considerations.
The deal therefore represents more than a conventional renewable-energy purchase. It signals the growing importance of firm, carbon-free electricity as technology companies expand AI infrastructure.
Fervo bets on enhanced geothermal technology
Fervo’s Cape Station project uses enhanced geothermal systems, or EGS, which seek to expand the availability of geothermal power beyond naturally occurring reservoirs.
The Houston-based company applies drilling techniques developed in the oil and gas industry to create engineered geothermal reservoirs deep underground. The approach is designed to allow geothermal electricity to be developed in locations where conventional geothermal resources may not be sufficient.
Cape Station is expected to become one of the largest commercial demonstrations of the technology.
Fervo has committed more than $2 billion to the project, according to reporting surrounding the agreement. The company’s first phase is expected to begin supplying electricity to the grid before the end of 2026, with additional capacity following as the project expands.
A potential turning point for geothermal
Fervo’s agreement with Google could also help demonstrate whether enhanced geothermal systems can move from promising technology to a large-scale commercial power source.
The company says the 396 MW agreement is the world’s largest enhanced geothermal power purchase agreement to date. Google could eventually increase its purchase to nearly 1 GW, creating a much larger commercial market for the technology.
The project remains subject to regulatory and engineering considerations, and the potential Utah data center has not been finalized.
Still, the agreement represents a significant step in the competition to supply the enormous amounts of reliable electricity required by the next generation of computing infrastructure.
As AI development accelerates, Google’s investment in geothermal power suggests that the future of the data-center industry may depend not only on faster chips and larger computing systems, but also on finding new ways to generate electricity around the clock.