• Google will purchase 396 MW of geothermal power from Fervo Energy’s Cape Station project in Utah, with an option to increase the deal to nearly 1 GW.
• Fervo has committed more than $2 billion to Cape Station, which uses enhanced geothermal systems to deliver round-the-clock carbon-free electricity.
• The agreement links data center expansion directly to new clean power capacity, as technology companies seek firm electricity supplies for rising computing demand.

Google has signed a record 396-megawatt power purchase agreement with Fervo Energy, securing geothermal electricity for a potential data center development in Utah.

The agreement covers output from Fervo’s Cape Station enhanced geothermal systems, or EGS, project in southwestern Utah. Fervo expects the contracted capacity to come online in 2028.

Google also holds an option to purchase roughly another 600 MW by June 2030. Exercising that option would take the total agreement to almost 1 gigawatt.

The arrangement is the largest enhanced geothermal power purchase agreement announced to date.

Data center demand reshapes clean power procurement

The deal comes as technology companies accelerate efforts to secure large volumes of reliable electricity for data centers.

Unlike wind and solar generation, geothermal power can operate around the clock. That characteristic is becoming increasingly valuable as artificial intelligence and cloud computing increase electricity demand.

“This agreement reinforces that EGS is ready to power the next generation of computing infrastructure,” Fervo CEO and co-founder Tim Latimer said in a statement. “As demand for reliable electricity grows, customers like Google need energy resources that can be deployed at scale, operate around the clock, and deliver where power is needed.”

Google has not confirmed where its proposed Utah data center would be located.

Final plans remain subject to engineering reviews, state and local approvals, and commercial conditions.

Google’s director of advanced energy technologies, Lucia Tian, said the company does not yet know where in Utah the data center will be located, according to The Wall Street Journal.

“Even though right now we don’t have clarity yet on how this will serve a data center…we know that it will be a foundational building block of power generation for a data center presence in Utah,” Tian told the Journal.

More than $2 billion committed to Cape Station

Fervo has committed more than $2 billion to Cape Station as it scales technology adapted from the oil and gas sector.

The Houston-based company uses advanced drilling and hydraulic fracturing techniques to create engineered underground geothermal reservoirs.

Cape Station is expanding beyond its initial 100 MW phase. Fervo expects the first phase to begin supplying electricity to the grid before the end of the year.

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“The next chapter of advanced power generation technology is being written in Utah,” Michael Terrell, Google’s head of advanced energy, said in a statement. “This project will drive meaningful economic benefit to the local community and help catalyze long-term energy cost reductions by making enhanced geothermal more affordable and accessible.”

The project adds another large corporate buyer to Fervo’s growing portfolio. Its contracted capacity now stands at about 1,000 MW, with Shell and Southern California Edison among its other customers.

Fervo also raised more than $2 billion through its May initial public offering.

Google expands its geothermal strategy

Google and Fervo have already worked together on geothermal deployment.

Fervo’s Project Red commercial pilot in Nevada began operating in 2023. Electricity from the project enters the local grid, including supplies serving Google’s Nevada data centers.

In June 2024, Fervo, Google and utility NV Energy also signed a 115 MW agreement connected to Nevada’s Clean Transition Tariff.

For executives and investors, the Utah agreement illustrates how data center energy procurement is evolving beyond conventional renewable PPAs.

Technology companies increasingly need electricity that combines low emissions with high availability. That is creating new commercial opportunities for geothermal, nuclear, storage and other firm power technologies.

The governance dimension will also matter. Google’s proposed Utah expansion still requires regulatory and local approvals, placing permitting and infrastructure planning alongside energy availability as key development risks.

At the same time, large corporate contracts can help emerging power technologies reach commercial scale.

If Google exercises its full expansion option, the Fervo agreement could approach 1 GW. That would place enhanced geothermal firmly within the growing competition to supply dependable, lower-carbon power to the world’s expanding digital infrastructure.