Geothermal energy company Fervo Energy has secured a significant contract with Google to provide nearly 400 megawatts of electricity from its Cape Station enhanced geothermal power plant in Utah. This power purchase agreement, announced on September 1, 2026, is set to supply energy starting in 2028 and includes an option for Google to acquire an additional 600 megawatts by June 2030. The deal supports Google's expanding energy needs, particularly for powering a planned large AI data center in Utah, while aligning with its commitment to reach net-zero emissions by 2030.

Enhanced geothermal technology utilized by Fervo allows for tapping into deeper and more abundant geothermal heat resources, a capability that could dramatically increase geothermal power generation in the U.S. Cape Station is currently permitted to develop 2 gigawatts, with estimates suggesting the site could potentially hold twice that capacity. Full development reaching 4 gigawatts would effectively double the nation's existing geothermal energy output, signifying a major contribution to clean energy infrastructure.

This new agreement builds on a multi-year partnership between Google and Fervo, with Google previously purchasing initial geothermal electrons and investing in Fervo during its last funding round before the company's IPO in 2026. While Fervo's stock experienced some volatility since going public, the announcement of this sizable contract boosted its shares by approximately 30%, though profits were partly taken the following day.

Google’s deal with Fervo highlights a strategic move toward renewable sources to support its data center growth and AI ambitions amid increasing energy demand. It contrasts with a recent 933-megawatt natural gas purchase, offering a path to expand clean energy use without compromising its emissions goals. As hyperscalers like Google seek reliable and scalable clean energy supplies, enhanced geothermal stands out as a promising option with substantial untapped potential in the national grid.