Google has agreed to purchase nearly half a gigawatt of geothermal energy from Fervo to power a planned new data center in Utah, marking another milestone for enhanced geothermal technology.
Announced Tuesday, the power purchase agreement commits Google to buying 396 megawatts from Fervo’s Cape Station power plant in Utah. The facility is expected to come online in 2028. Under the agreement, Google also holds an option through June 2030 to buy an additional 600 megawatts, potentially expanding the deal to roughly one gigawatt.
Powering AI Without Losing Sight of Net Zero
The agreement lands as Google and other hyperscalers search the country for new electricity sources to feed growing demand. For years, Google has ranked among the largest buyers of clean energy in the United States and abroad, purchasing power from wind, solar, and batteries as part of its pledge to reach net-zero emissions by 2030.
That target grew harder to hit in April, when Google signed a deal with data center developer Crusoe for 933 megawatts of natural gas power in Texas. The new Fervo agreement could help Google fuel its AI ambitions while limiting the impact on its net-zero commitment.
Cape Station’s Expansion Potential
Fervo is permitted to develop up to 2 gigawatts of geothermal energy at Cape Station. However, a third-party engineer determined the site holds enough heat to generate twice that amount, according to Sarah Jewett, Fervo’s senior vice president of strategy. If fully developed, those 4 gigawatts would roughly double the total geothermal generating capacity in the United States, based on a recent U.S. Department of Energy report. That leaves room for Google’s gigawatt commitment to grow larger if Fervo’s operations proceed as planned.
Enhanced geothermal technologies, like those Fervo has developed, tap deeper sources of underground heat. The Department of Energy report estimates the United States could generate up to 57 terawatts of electricity using these methods.
A Long-Running Partnership
The new deal builds on a relationship stretching back more than five years. Google purchased some of Fervo’s earliest electrons and later invested in the startup’s final funding round before it went public.
Fervo stock jumped on its first day of trading but gave back those gains and more in the following months. News of the Google deal pushed the stock up roughly 30% before traders took some profits the next day.
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