Fervo plans $2 billion Cape Station spend as grid deliveries approach.
Fervo Energy has agreed to sell nearly 400 megawatts of electricity to Alphabet’s Google from a planned enhanced geothermal facility in southwestern Utah, the largest power contract in the geothermal company’s history.
The deal would supply a data center Google plans to build in Utah, though the company has not yet settled on a location. Google has an option to expand the agreement by about 600 megawatts by June 2030.
Houston-based Fervo will draw the electricity from its Cape Station project in southwestern Utah, which it aims to develop into the world’s largest enhanced geothermal facility. Fervo plans to begin delivering power to Google in 2028 and to start supplying the grid later this year for the project’s first phase, for which the company is spending more than $2 billion.
Google’s director of advanced energy technologies, Lucia Tian, said the electricity would anchor the company’s data-center presence in Utah, even though the details of how the power would serve a specific facility remain unsettled.
“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 said.
Fervo’s enhanced geothermal approach applies hydraulic-fracturing techniques pioneered in oil-and-gas drilling to create subsurface reservoirs that produce round-the-clock electricity, which makes the technology especially valuable to large electricity users such as data centers.
Google and Fervo have worked together for roughly five years, beginning with a 3-megawatt pilot project in Nevada that started operating in 2023. The companies later joined with Nevada utility NV Energy on a 115-megawatt deal.
Fervo now has roughly 1,000 megawatts contracted. Other customers include Shell and Southern California Edison. The company went public in May, raising more than $2 billion, and last year privately raised $462 million from a group of investors that included Google and Breakthrough Energy Ventures, the climate-and-energy fund backed by Bill Gates.
Tim Latimer, Fervo’s chief executive and co-founder, framed the Google agreement as the deployment of capital raised in the initial public offering.
“This is us taking that $2.2 billion of proceeds from the IPO and turning it into rapid commercial growth, which is the whole point,” Latimer said.
The deal illustrates how technology companies are moving to secure power supplies even before their project details are finalized. Demand for electricity to run artificial-intelligence data centers has surged across the United States, but supply has lagged: equipment backlogs for transmission infrastructure and complex engineering studies have pushed grid-connection waits well into the 2030s.
Google is pursuing multiple power sources in parallel, working with companies developing nuclear power and long-duration energy storage alongside geothermal providers.