Geothermal energy company Fervo has secured a power purchase agreement with Google for 396 megawatts of electricity to support a new data center in Utah. The agreement, announced on September 2, 2026, commits Google to purchasing the electricity from Fervo’s Cape Station power plant, which is projected to begin operations in 2028. Google also has the option to acquire an additional 600 megawatts by June 2030.
This agreement is part of Google's broader strategy to source renewable energy, as the company has been a significant buyer of clean energy in the U.S. and globally, aiming to achieve net-zero emissions by 2030. However, a recent deal with data center developer Crusoe for 933 megawatts of natural gas power in Texas has complicated this goal.
The Fervo agreement may assist Google in advancing its artificial intelligence initiatives while still working towards its emissions targets. Fervo is authorized to develop up to 2 gigawatts of geothermal energy at the Cape Station site, with indications from a third-party engineer that the site could potentially generate up to 4 gigawatts. If fully developed, this capacity could significantly increase the geothermal generating capacity in the U.S., which the U.S. Department of Energy estimates could reach up to 57 terawatts of electricity using enhanced geothermal technologies.
Fervo and Google have maintained a collaborative relationship for over five years, with Google previously purchasing some of Fervo's initial electricity output and investing in the company's recent funding round prior to its public listing. Following the announcement of the Google deal, Fervo's stock experienced a 30% increase, although it later saw a decline as traders took profits.