When will the power supply begin?

Fervo will start selling electricity to Google in 2028, with an option to increase purchases to 1 GW by mid-2030.

How does enhanced geothermal differ from traditional geothermal?

Enhanced geothermal systems don't need natural steam reservoirs; they only require hot rock within drilling reach, allowing more locations.

What are Fervo's financials after this deal?

Fervo reported a net loss of $55.9 million in its first full quarter as a public company, with capex of $226.5 million. It projects up to $900 million in capex for H2 2026, before this deal.

AI Business & IndustryYahoo Finance AI1h agoSep 2, 2026, 04:01 JST2 min read

Google signs largest enhanced geothermal deal with Fervo

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Key takeaway

Google has signed the largest enhanced geothermal deal ever with Fervo Energy.
Fervo will supply 396 MW starting in 2028, with an option to double.
This provides steady clean power for AI data centers, addressing a key bottleneck.

3 Key Points

What happened
Fervo Energy signed a deal to supply 396 MW of electricity from its Cape Station project in Utah to a Google data center, with an option to expand to 1 GW by mid-2030. Fervo shares rose over 25% on Tuesday.
Why it matters
This is the world's largest enhanced geothermal power purchase agreement, providing reliable, clean, around-the-clock power for AI data centers—unlike intermittent solar and wind. It also bolsters Fervo's backlog, already at $7.2 billion from 658 MW of binding contracts.
What to watch
Google still needs regulatory approvals and must decide the data center's location. Fervo's Cape Station has potential capacity of 4.3 GW, and the deal adds 80% to its current 500 MW under construction, or 3x if expanded to 1 GW.

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Context & Analysis

This deal underscores the urgent need for reliable power in the AI build-out, as solar and wind are intermittent and grid connections take years. Geothermal offers a scalable, clean solution at the source, which is why Google is securing power before finalizing data center locations. Fervo's enhanced geothermal technology widens the feasible geography, making it attractive to tech giants. The agreement also strengthens Fervo's financial position, adding to its existing backlog and providing the revenue certainty lenders require, potentially easing future project financing. With backing from Devon Energy, Fervo's growth trajectory appears robust, though it remains early-stage and must still deliver meaningful power sales revenue.

FAQ

When will the power supply begin?: Fervo will start selling electricity to Google in 2028, with an option to increase purchases to 1 GW by mid-2030.
How does enhanced geothermal differ from traditional geothermal?: Enhanced geothermal systems don't need natural steam reservoirs; they only require hot rock within drilling reach, allowing more locations.
What are Fervo's financials after this deal?: Fervo reported a net loss of $55.9 million in its first full quarter as a public company, with capex of $226.5 million. It projects up to $900 million in capex for H2 2026, before this deal.

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