Geothermal deals

Introduction

The partnership between Google and Fervo Energy has become one of the clearest examples of why AI companies are increasingly interested in geothermal power. The appeal is simple: advanced AI systems need enormous amounts of electricity, but data centres work best with power that is steady, predictable and low-carbon. Geothermal energy offers all three.

Geothermal deals illustration 1 For years, geothermal power was treated as a niche resource limited to a few volcanic regions. Google and Fervo helped change that perception by demonstrating a newer approach called enhanced geothermal systems, or EGS. Instead of relying only on naturally occurring underground reservoirs, EGS uses drilling and reservoir-engineering techniques adapted partly from the oil and gas industry to create usable geothermal systems in far more places. [WIRED This matters for the wider]wired.comThis enhanced geothermal system (EGS) diverges from traditional geothermal energy by drilling into dry rock and using hydraulic fracturin…“AI bloom” question because advanced AI infrastructure may eventually require vast amounts of clean electricity that can operate continuously without overwhelming grids or sharply increasing emissions. Nuclear power attracts attention for similar reasons, but Google’s geothermal deals suggest that another path may be emerging: smaller, modular, continuously operating clean-energy systems that can be developed faster and with fewer political barriers than large nuclear plants.

How advanced geothermal differs from traditional projects

Traditional geothermal plants work only where geology naturally concentrates underground heat, water and permeability in the same location. That limits deployment mostly to places such as Iceland, parts of New Zealand, Indonesia, Kenya and selected western US regions.

Enhanced geothermal systems attempt to bypass that limitation. Companies such as Fervo drill deep into hot underground rock, then create engineered fracture networks that allow water to circulate and collect heat. The heated water or steam is then used to generate electricity. The approach borrows heavily from directional drilling and hydraulic-fracturing techniques developed in shale oil and gas extraction. [WIRED]wired.comThis enhanced geothermal system (EGS) diverges from traditional geothermal energy by drilling into dry rock and using hydraulic fracturin… [The Wall Street Journal]wsj.comThis brings the company’s total equity and debt funding to approximately $1.5 billion since its 2017 founding. Fervo applies fracking tec…

The technological significance is not merely that geothermal can now work in more places. It is that EGS starts to behave more like an industrial manufacturing process rather than a rare geological accident. That is highly attractive to AI companies, which tend to think in terms of repeatable infrastructure scaling.

Fervo’s Nevada “Project Red” became an important proof point because it showed that these systems could operate on a commercial grid serving Google data centres. In late 2023, Google announced that carbon-free electricity from the project had begun flowing into the Nevada grid. [blog.google]blog.googlegoogle fervo geothermal energy partnershipA first-of-its-kind geothermal project is now operationalNov 28, 2023 — Today, we are pleased to announce that our geothermal project is…

The pilot itself was relatively small, initially producing only a few megawatts. But the symbolic importance was much larger. The project demonstrated several things simultaneously:

Horizontal drilling could improve geothermal output. [time.com]time.comGeothermal Energy AdvancesThe use of fiber optic cables in the wells allows for real-time monitoring of flow, temperature, and performance. This technology has sig…
Fibre-optic monitoring systems could track underground reservoir performance in real time.
Enhanced geothermal systems could provide stable 24/7 electricity rather than intermittent renewable generation.
Large technology firms were willing to act as early commercial buyers. [Time]time.comGeothermal Energy AdvancesThe use of fiber optic cables in the wells allows for real-time monitoring of flow, temperature, and performance. This technology has sig… [Fervo]youtube.comWhy we're betting on enhanced geothermal electricityFervo Energy's $10B IPO: The Geothermal Revolution Nobody Saw Coming…

For AI infrastructure planners, the key point is not that one small Nevada project can power future supercomputing clusters on its own. The important signal is that geothermal may become scalable enough to support a wider class of continuously operating AI facilities.

What Google’s Nevada agreements demonstrate

Google’s involvement evolved from a technology pilot into a broader energy-procurement strategy.

The original collaboration with Fervo focused on proving that enhanced geothermal systems could operate commercially. Later agreements became more ambitious. In 2024, Google partnered with NV Energy and Fervo to expand geothermal supply for Nevada operations from roughly 3.5 megawatts to 115 megawatts over several years. Reuters [The Wall Street Journal]wsj.comThis brings the company’s total equity and debt funding to approximately $1.5 billion since its 2017 founding. Fervo applies fracking tec…

This was important for several reasons.

AI companies increasingly value “firm clean power”

Wind and solar remain central to technology-company energy strategies. But AI computing introduces unusually strong demand for electricity that is available around the clock.

Large AI training clusters are expensive to build and inefficient if power availability fluctuates. Batteries can smooth short-term variation, but long-duration storage remains costly at the scale future AI infrastructure may require.

Geothermal solves a different problem from solar or wind. It is not primarily about peak daytime generation. It is about dependable baseline electricity that can run continuously with low operational emissions. Reuters described the Nevada arrangement as part of the broader effort by major technology firms to secure reliable electricity for rapidly expanding AI and cloud infrastructure. [Reuters]reuters.comGoogle partners with Nevada utility for geothermal to power data centersThe agreement, pending state regulator approval, will elevate Google's geothermal electricity usage from 3.5 megawatts to 115 megawatts o…

This helps explain why geothermal has become strategically interesting despite still being much smaller than solar or wind globally.

Google is helping create a financing model

The Nevada agreements also matter because they show how hyperscale technology firms can reduce risk for emerging energy technologies.

Fervo is not yet a utility giant with decades of operating history. Geothermal drilling is capital-intensive and carries geological uncertainty. Long-term power-purchase agreements from a buyer such as Google help developers secure financing for projects that might otherwise struggle to attract investment.

That dynamic resembles earlier renewable-energy transitions. Large technology firms helped accelerate solar and wind deployment through long-term purchasing commitments. Google appears to be trying something similar for geothermal. [blog.google]blog.googleGoogle's new model for clean energy approved in NevadaMay 13, 2025 — Developed by Fervo Energy and delivered by NV Energy, this clean power will support Google's data centers and cloud region…Published: May 13, 2025

The broader implication is that AI demand may unintentionally accelerate certain forms of clean-energy innovation. If frontier AI companies become desperate enough for stable electricity, they may act as anchor customers for technologies that previously lacked commercial scale.

The projects show a different path from nuclear megaprojects

Nuclear energy remains attractive to many AI firms because it offers stable, low-carbon electricity. But nuclear plants often face long construction timelines, intense political conflict and high financing risk.

Advanced geothermal has its own risks, especially drilling failure and uncertain reservoir performance. Yet Google’s geothermal deals suggest that some companies see geothermal as politically and operationally easier to deploy in the near term.

Unlike a large nuclear reactor, geothermal projects can potentially be built in smaller increments and expanded modularly. They also avoid many of the public fears associated with nuclear waste or reactor accidents, even though geothermal projects can still face environmental and local opposition.

For AI firms trying to expand computing capacity quickly, deployment speed matters almost as much as ultimate generating capacity.

Geothermal deals illustration 2

Why this matters for the long-term AI abundance argument

Much discussion about AI abundance focuses on software capabilities: smarter models, scientific discovery, automation and productivity growth. But physical infrastructure may become equally important.

If advanced AI systems continue scaling, electricity could become one of the central constraints on future computing expansion. The optimistic “AI bloom” scenario assumes civilisation can massively increase intelligence and automation without colliding with hard resource bottlenecks.

Google’s geothermal strategy matters because it addresses one of those bottlenecks directly.

Enhanced geothermal systems are especially interesting in this context because they combine several desirable characteristics:

Continuous electricity generation. [fervoenergy.com]fervoenergy.comCape Station will begin delivering around-the-clock, clean…Read more…
Very low operational emissions.
Small surface land footprints compared with some renewable systems.
Potential compatibility with existing drilling expertise and supply chains.
Reduced dependence on weather variability. [WIRED]wired.comThis enhanced geothermal system (EGS) diverges from traditional geothermal energy by drilling into dry rock and using hydraulic fracturin… [Time]time.comGeothermal Energy AdvancesThe use of fiber optic cables in the wells allows for real-time monitoring of flow, temperature, and performance. This technology has sig…

If such systems became cheap and geographically flexible enough, they could support a future where AI-driven infrastructure grows without proportionally increasing fossil-fuel dependence.

That does not guarantee a flourishing future. Cheap energy can strengthen authoritarian surveillance systems as easily as scientific research. Large AI infrastructure build-outs can also concentrate economic and political power inside a handful of corporations and regions. But the energy question is real: advanced AI cannot scale indefinitely on abstract computation alone. It requires enormous physical systems.

Geothermal is becoming attractive because it promises to make those systems more stable.

The limits of scaling geothermal near computing hubs

The Google–Fervo story is promising, but it is still far from proving that geothermal can power the full future of AI.

Geography still matters

Enhanced geothermal is more flexible than traditional geothermal, but it is not infinitely deployable. Projects still require suitable underground temperatures, drilling conditions and water-management strategies.

Many major data-centre regions are not ideal geothermal regions. Northern Virginia, for example, is the world’s largest data-centre cluster but is not an obvious geothermal hotspot.

That means geothermal may support only certain AI corridors unless transmission infrastructure improves substantially.

Drilling remains expensive and risky

A central challenge for geothermal has always been drilling cost and geological uncertainty. Wells can underperform, temperatures may decline faster than expected, and reservoir engineering can fail.

Fervo argues that drilling improvements are rapidly reducing costs. Time magazine reported that the company significantly reduced drilling times and per-well costs using techniques adapted from shale extraction. [Time]time.comGeothermal Energy AdvancesThe use of fiber optic cables in the wells allows for real-time monitoring of flow, temperature, and performance. This technology has sig…

Even so, geothermal still competes against rapidly falling solar and battery prices. To scale globally, EGS projects must prove they can consistently deliver affordable electricity rather than merely technically possible electricity.

Geothermal deals illustration 3

Grid integration is complicated

Google’s Nevada arrangements also reveal another reality: data centres do not usually connect directly to a single dedicated power plant.

Instead, electricity often flows into broader utility systems. Google’s agreements involved NV Energy and regulatory structures such as Nevada’s Clean Transition Tariff. [blog.google]blog.googleon the Keyword, Google's official blog… [Renewable Energy Industry]renewable-energy-industry.comOrmat Signs 150-MW PPA with NV Energy for Google in Nevada6 days ago — The PPA is enabled through NV Energy's Clean Transition Tariff (CT…

That matters because future AI energy expansion will depend not just on generation technologies, but also on permitting, transmission, utility regulation and local politics. Even technically successful geothermal projects can face delays if grids cannot absorb or distribute new power efficiently.

Geothermal alone probably cannot satisfy AI-scale demand

The current geothermal industry remains tiny compared with overall electricity demand. Even optimistic projections suggest geothermal will complement rather than replace solar, wind, gas, hydro and nuclear power.

Google itself is pursuing a diversified strategy that includes geothermal, renewables and nuclear-related partnerships. The likely future is not a single dominant power source, but a mixed system built around different regional strengths and political constraints.

Still, geothermal’s value may grow precisely because it fills a difficult niche: clean electricity that operates continuously without relying on massive fuel supply chains or weather conditions.

Why the Google–Fervo case became influential

The Google–Fervo partnership gained attention partly because it arrived at a moment when AI and energy concerns suddenly converged.

Before the generative-AI boom, geothermal was usually discussed within climate and energy-policy circles. After the explosion of AI infrastructure investment, geothermal started appearing in conversations about compute scaling, data-centre strategy and the physical limits of technological progress.

That shift reflects a broader change in how AI companies now think about infrastructure. Energy is no longer a background operational issue. It is becoming part of the strategic core of AI development itself.

The Nevada projects remain early demonstrations rather than definitive proof of a new energy order. Yet they helped establish an important idea: if advanced AI systems require civilisation-scale computing infrastructure, then breakthroughs in electricity generation may become almost as important as breakthroughs in algorithms.

In that sense, Google and Fervo’s geothermal projects are not merely climate initiatives. They are early experiments in building the energy systems that a much more AI-intensive civilisation might eventually require.

Endnotes

Source: blog.google
Title: google fervo geothermal energy partnership
Link: https://blog.google/company-news/outreach-and-initiatives/sustainability/google-fervo-geothermal-energy-partnership/
Source snippet
A first-of-its-kind geothermal project is now operationalNov 28, 2023 — Today, we are pleased to announce that our geothermal project is...
Source: wired.com
Link: https://www.wired.com/story/new-geothermal-power-plant-made-the-internet-a-little-greener
Source snippet
This enhanced geothermal system (EGS) diverges from traditional geothermal energy by drilling into dry rock and using hydraulic fracturin...
Source: time.com
Title: Geothermal Energy Advances
Link: https://time.com/7094813/fervo-energy-fervoflex/
Source snippet
The use of fiber optic cables in the wells allows for real-time monitoring of flow, temperature, and performance. This technology has sig...
Source: reuters.com
Title: Google partners with Nevada utility for geothermal to power data centers
Link: https://www.reuters.com/business/energy/google-partners-with-nevada-utility-geothermal-power-data-centers-2024-06-13/
Source snippet
The agreement, pending state regulator approval, will elevate Google's geothermal electricity usage from 3.5 megawatts to 115 megawatts o...
Source: blog.google
Title: Google’s new model for clean energy approved in Nevada
Link: https://blog.google/feed/nevada-clean-energy/
Source snippet
May 13, 2025 — Developed by Fervo Energy and delivered by NV Energy, this clean power will support Google's data centers and cloud region...

Published: May 13, 2025
Source: renewable-energy-industry.com
Link: https://www.renewable-energy-industry.com/news/world/article-7241-geothermal-energy-from-ormat-for-google-data-centers-ormat-signs-150-mw-ppa-with-nv-energy-for-google-in-nevada
Source snippet
Ormat Signs 150-MW PPA with NV Energy for Google in Nevada6 days ago — The PPA is enabled through NV Energy's Clean Transition Tariff (CT...
Source: google.com
Link: https://www.google.com/
Source snippet
GoogleSearch the world's information, including webpages, images, videos and more. Google has many special features to help you find exac...
Source: renewable-energy-industry.com
Link: https://www.renewable-energy-industry.com/countries/article-7241-geothermal-energy-from-ormat-for-google-data-centers-ormat-signs-150-mw-ppa-with-nv-energy-for-google-in-nevada
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T) and is subject to approval by the Public Utilities Commission of Nevada (...Read more...
Source: blog.google
Link: https://blog.google/
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on the Keyword, Google's official blog...
Source: about.google
Link: https://about.google/products/
Source: reuters.com
Link: https://www.reuters.com/sustainability/climate-energy/ormat-signs-150-mw-geothermal-power-deal-with-nv-energy-supply-google-nevada-2026-02-17/
Source snippet
Ormat signs 150 MW geothermal power deal with NV...17 Feb 2026 — The agreement for 150 megawatts of new geothermal capacity would allow...
Source: youtube.com
Title: Why we’re betting on enhanced geothermal electricity
Link: https://www.youtube.com/watch?v=lHbtmgprhmA
Source snippet
Fervo Energy's $10B IPO: The Geothermal Revolution Nobody Saw Coming...
Source: youtube.com
Title: Fervo Energy’s $10B IPO: The Geothermal Revolution Nobody Saw Coming
Link: https://www.youtube.com/watch?v=Vmc2m0krmiQ
Source snippet
Building Fervo's geothermal giant...
Source: fervoenergy.com
Title: Fervo Energy Enhanced Geothermal Has Been Proven at Scale
Link: https://fervoenergy.com/enhanced-geothermal-has-been-proven-at-scale-heres-what-two-years-of-production-data-show/
Source snippet
Here's...Project Red was designed to test and prove the core technologies underpinning Fervo's approach to EGS, building on early techni...
Source: wsj.com
Link: https://www.wsj.com/finance/fervo-energy-raises-462-million-lands-google-as-investor-27a06c13
Source snippet
This brings the company’s total equity and debt funding to approximately $1.5 billion since its 2017 founding. Fervo applies fracking tec...
Source: fervoenergy.com
Title: Fervo Energy Fervo’s Year in Review
Link: https://fervoenergy.com/fervos-year-in-review/
Source snippet
Fervo's Year in ReviewDecember 22, 2023. Share. HIGHLIGHTS. Fervo established its commercial pilot, Project Red, as a leading commercial...

Published: December 22, 2023
Source: wsj.com
Link: https://www.wsj.com/articles/google-berkshire-utility-partner-to-power-nevada-data-centers-with-clean-energy-eee39f5e
Source snippet
This agreement, pending approval by the Public Utilities Commission of Nevada, will supply Google with approximately 115 megawatts of geo...
Source: fervoenergy.com
Link: https://fervoenergy.com/
Source snippet
Fervo Energy - Next-Generation Geothermal ProjectsWe have pioneered and proven a new approach to next-generation geothermal, a 24/7 carbo...
Source: Wikipedia
Link: https://en.wikipedia.org/wiki/Google
Source snippet
GoogleGoogle is the largest provider of search engines, mapping and navigation applications, email services, office suites, online vid...
Source: Wikipedia
Title: Fervo Energy
Link: https://en.wikipedia.org/wiki/Fervo_Energy
Source snippet
Fervo EnergyFervo Energy is a geothermal company based in Houston, Texas, that generates electricity through enhanced geothermal syste...
Source: fervoenergy.com
Title: 2024 year in review
Link: https://fervoenergy.com/2024-year-in-review/
Source snippet
Leading the Charge in Geothermal...Jan 21, 2025 — As we look back on 2024, Fervo Energy celebrates a year filled with groundbreaking ach...
Source: fervoenergy.com
Link: https://fervoenergy.com/fervo-energy-breaks-ground-on-the-worlds-largest-next-gen-geothermal-project/
Source snippet
Cape Station will begin delivering around-the-clock, clean...Read more...
Source: fervoenergy.com
Title: fervo energy announces technology breakthrough in next generation geothermal
Link: https://fervoenergy.com/fervo-energy-announces-technology-breakthrough-in-next-generation-geothermal/
Source snippet
Fervo Energy Announces Technology Breakthrough in...Jul 18, 2023 — Well test results at Fervo Energy's commercial pilot project confirm...
Source: carboncredits.com
Link: https://carboncredits.com/fervo-energys-421m-breakthrough-and-the-rise-of-geothermal-power-for-clean-electricity/
Source snippet
Fervo Energy's $421M Breakthrough and The Rise of...23 Mar 2026 — Fervo Energy secures $421M to scale geothermal power in Utah, unlockin...
Source: thinkgeoenergy.com
Title: Project Red | Think Geo Energy
Link: https://www.thinkgeoenergy.com/tag/project-red/
Source snippet
Project Red | ThinkGeoEnergy - Geothermal News & InsightsFervo highlights stable operations of Project Red geothermal project after 600 d...
Source: thinkgeoenergy.com
Link: https://www.thinkgeoenergy.com/fervo-highlights-stable-operations-of-project-red-geothermal-project-after-600-days/
Source snippet
Fervo highlights stable operations of Project Red...Apr 14, 2026 — Fervo highlights stable operations of Project Red geothermal project...
Source: linkedin.com
Link: https://www.linkedin.com/posts/guy-cohen-44516991_fervo-goes-hotter-and-deeper-again-having-activity-7426929564418830336-H_bR
Source snippet
Fervo Advances in Enhanced Geothermal Systems with...Fervo has announced early well tests from its new project, Project Blanford., satin...
Source: facebook.com
Link: https://www.facebook.com/GreaterHoustonPartnership/posts/fervo-energy-has-raised-462-million-from-investors-including-google-to-accelerat/1289181693238179/
Source snippet
al Earthshot and show that geothermal energy could supply...
Source: utilitydive.com
Title: fervo energy enhanced geothermal system google
Link: https://www.utilitydive.com/news/fervo-energy-enhanced-geothermal-system-google/688620/
Source snippet
Fervo Energy sees 'breakthrough' in enhanced geothermal...Jul 21, 2023 — Startup Fervo Energy built and tested a pilot enhanced geotherm...
Source: openei.org
Link: https://openei.org/wiki/Fervo_Energy

Additional References

Source: onestopesg.com
Link: https://onestopesg.com/esg-news/google-signs-150mw-geothermal-ppa-with-ormat-in-nevada-1771501072192
Source snippet
Google Signs 150MW Geothermal PPA with Ormat in Nevada5 days ago — Under the Clean Transition Tariff model, Google's investment fully cov...
Source: seequent.com
Link: https://www.seequent.com/the-geothermal-innovation-powering-googles-data-centres/
Source snippet
The geothermal innovation powering Google's data centresFervo's 'Project Red' pilot successfully tested a 3.5-MW enhanced geothermal syst...
Source: carboncredits.com
Link: https://carboncredits.com/google-taps-earths-heat-in-150mw-geothermal-deal-with-ormat-technologies-to-power-data-centers/
Source snippet
Google Taps Earth's Heat in 150MW Geothermal Deal with...23 Feb 2026 — Google signs a 150MW geothermal deal with Ormat to power Nevada d...
Source: linkedin.com
Link: https://www.linkedin.com/posts/brianakobor_ormat-technologies-announces-the-signing-activity-7429590253302112256-Bvtj
Source: youtube.com
Link: https://www.youtube.com/Google
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GoogleStart Building with AI · Tutorials for getting started with our generative AI tools, including Google AI Studio, Nano Banana, and m...
Source: power-eng.com
Title: google to power nevada data center with 115 mw of geothermal energy
Link: https://www.power-eng.com/renewables/google-to-power-nevada-data-center-with-115-mw-of-geothermal-energy/
Source snippet
Google to power Nevada data center with 115 MW...Jun 13, 2024 — Google said the 115 MW supply agreement would increase the amount of enh...
Source: datacenterknowledge.com
Link: https://www.datacenterknowledge.com/energy-power-supply/google-taps-geothermal-power-for-nevada-data-centers
Source snippet
A new partnership with Ormat and NV Energy will see Google harness geothermal power in Nevada.Read more...
Source: canarymedia.com
Title: americas first enhanced geothermal plant just got up and running
Link: https://www.canarymedia.com/articles/geothermal/americas-first-enhanced-geothermal-plant-just-got-up-and-running
Source snippet
America's first 'enhanced' geothermal plant just got…Nov 28, 2023 — A next-generation geothermal plant backed by Google has started sendi...
Source: enkiai.com
Title: geothermal data centers the 2026 clean transition tariff guide
Link: https://enkiai.com/data-center/geothermal-data-centers-the-2026-clean-transition-tariff-guide
Source snippet
Geothermal Data Centers: The 2026 Clean Transition Tariff...4 days ago — A 15-year portfolio PPA to supply up to 150 MW of new conventio...
Source: finance.yahoo.com
Title: ormat technologies announces signing geothermal 134400647
Link: https://finance.yahoo.com/news/ormat-technologies-announces-signing-geothermal-134400647.html
Source snippet
Technologies Announces the Signing of Geothermal...17 Feb 2026 — Ormat Technologies Announces the Signing of Geothermal Portfolio PPA of...