Fervo Energy has secured a landmark agreement to provide Google with nearly 400 megawatts of clean electricity generated from its geothermal project in southwest Utah. This deal represents the largest commitment to date for next-generation geothermal technology, which utilizes advanced drilling techniques to tap into underground heat from hot, dry rock. Fervo is investing over $2 billion into the Cape Station facility, aiming to establish it as the world’s largest system of its kind by 2028. This partnership serves as a critical financial milestone for the startup, helping to scale innovative, around-the-clock renewable energy solutions.
The project, known as Cape Station, is being developed in phases. Fervo is currently working on the initial 100-megawatt phase and expects to begin test power generation from a 33-megawatt unit later this year. The agreement with Google will facilitate the construction of the second, 400-megawatt phase, which is projected to be operational in approximately two years. While Google has not yet finalized the location for a potential data center in Utah, the company views this geothermal power as a foundational element for its future infrastructure needs in the region.
This collaboration builds upon a long-standing relationship between the two companies, which began with a 2021 agreement to advance geothermal technology. Fervo’s approach utilizes techniques adapted from the oil and gas industry to access heat in locations where conventional geothermal, which relies on natural hot springs, is not feasible. Currently, geothermal energy accounts for only 0.4% of U.S. electricity production. By securing this contract, Fervo aims to demonstrate that next-generation geothermal systems can be deployed at scale to provide reliable, constant power, helping to meet the growing energy demands of major tech operations.
Beyond the immediate 400-megawatt commitment, the agreement includes significant expansion potential. Google holds an option to increase its purchase from Cape Station by approximately 600 megawatts by June 2030. Furthermore, the companies have established a right of first refusal, granting Google the opportunity to purchase up to 3 gigawatts of electricity from future geothermal plants developed by Fervo. Following the announcement, Fervo’s shares saw a 15% increase, underscoring the market’s positive reception to the deal and the growing importance of dispatchable clean energy in the power sector.