Fervo Energy signs record 396 MW geothermal deal with Google

Fervo Energy signs record 396 MW geothermal deal with Google

Tue, September 1, 2026 at 4:15 PM GMT+3 2 min read

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Fervo Energy signed a 396-megawatt power purchase agreement with Alphabet's Google on Tuesday, the largest enhanced geothermal power purchase agreement on record, to supply carbon-free electricity for a potential data center in Utah.

The deal covers output from Fervo's Cape Station enhanced geothermal systems project in southwestern Utah, which the company expects to come online in 2028. Under the agreement, Google also holds an option to expand its purchase by roughly 600 megawatts by June 2030, which would bring the total to nearly 1 gigawatt, the company said. Final data center plans remain subject to engineering feasibility reviews, state and local approvals, and commercial conditions.

"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'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.

"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 new agreement builds on an existing partnership between the two companies. Fervo's commercial pilot project in Nevada, known as Project Red, came online in 2023 and delivers power to the local grid, including Google's data centers in the state. In June 2024, Fervo, Google, and utility NV Energy signed a 115-megawatt deal in Nevada tied to the Clean Transition Tariff, the company said.

Tuesday's deal is part of Cape Station's expansion beyond its initial 100-megawatt phase. Fervo, headquartered in Houston, applies drilling and hydraulic fracturing methods borrowed from the oil-and-gas sector to engineer underground geothermal reservoirs, and has committed more than $2 billion to the Cape Station project. Fervo anticipates that Cape Station's initial phase will begin feeding electricity into the grid before the end of the year.

Fervo's May initial public offering brought in more than $2 billion in proceeds. Fervo's total contracted capacity now stands at around 1,000 megawatts, with Shell and Southern California Edison among the other buyers.