Enhanced geothermal notches another win as Google buys 400 MW from Fervo

Google has entered a power‑purchase agreement to buy 396 megawatts of electricity from Fervo Energy’s Cape Station geothermal plant in Utah, with the contract slated to begin when the facility comes online in 2028. The deal, announced on Tuesday, also gives Google the option to purchase an additional 600 megawatts through June 2030, potentially bringing the total to nearly one gigawatt—enough power to run a very large AI data center. The agreement marks another milestone in the growing partnership between the two companies, which have collaborated for over five years and saw Google invest in Fervo’s most recent funding round before the startup’s public listing.

The transaction is significant for Google’s broader clean‑energy strategy, which aims to achieve net‑zero emissions by 2030. While the tech giant has historically sourced power from wind, solar and battery storage, a recent 933‑megawatt natural‑gas deal with data‑center developer Crusoe in Texas complicated its emissions target. By securing geothermal power—a source that can deliver baseload electricity without carbon emissions—Google can support its expanding AI workloads without jeopardizing its climate commitments. Fervo’s Cape Station is permitted for up to 2 gigawatts of geothermal capacity, and an independent engineer has indicated the site could ultimately host twice that amount, potentially doubling the United States’ total geothermal generation if fully realized.

If Fervo’s enhanced geothermal technology proceeds as planned, the site could eventually produce up to 4 gigawatts, a figure that would roughly double U.S. geothermal output according to a Department of Energy report. The report also suggests that nationwide deployment of such technology could unlock as much as 57 terawatts of electricity. The news lifted Fervo’s stock, which rose about 30 percent after the announcement, though gains later moderated as traders took profits. The deal underscores the increasing role of geothermal energy in meeting the power demands of AI‑driven data centers and highlights a growing trend among hyperscalers to diversify into low‑carbon, baseload resources.

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