Fervo Energy (FRVO) stock climbed 15% on Tuesday morning after the Wall Street Journal reported the geothermal company had signed its largest-ever power deal with Alphabet’s Google.
The deal covers nearly 400 megawatts of electricity from Fervo’s Cape Station project in southwestern Utah. That is enough to power a midsize city.
Fervo plans to start delivering power to Google in 2028. Cape Station is being developed into what Fervo intends to become the world’s largest enhanced geothermal facility.
The company uses technology originally developed by the oil-and-gas industry, fracking rocks to create geothermal reservoirs and generate electricity. Fervo is putting more than $2 billion into Cape Station and expects to begin delivering power to the grid later this year for the first phase.
$GOOGL SIGNS 396MW GEOTHERMAL DEAL WITH $FRVO
Google signed a 396 MW PPA with Fervo Energy to supply carbon-free power from its Cape Station geothermal project in Utah, expected online in 2028.
Google also has an option to add another ~600 MW by June 2030, potentially taking… pic.twitter.com/4HL6frvHoO
— Wall St Engine (@wallstengine) September 1, 2026
Google plans to use the electricity for a data center in Utah. The exact location has not been decided, and the project still requires state and local regulatory approvals.
“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,” said Lucia Tian, Google’s director of advanced energy technologies.
Google also holds an option to expand the agreement by around 600 megawatts by June 2030.
The two companies have been working together for about five years. It started with a small 3-megawatt pilot project in Nevada that began operating in 2023. That grew into a 115-megawatt deal in Nevada involving Fervo, Google, and utility NV Energy.
Fervo now has roughly 1,000 megawatts contracted in total. Other customers include Shell and Southern California Edison.
Fervo went public in May, raising more than $2 billion in its IPO. Before that, the company raised $462 million privately from investors including Google and Bill Gates’s Breakthrough Energy Ventures. Gates has been a backer since early on.
CEO Tim Latimer framed the deal in straightforward terms. “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,” he said.
Clean power that runs around the clock, like geothermal, is increasingly sought after by tech companies building out data center capacity.
Grid connection wait times can stretch well into the 2030s due to equipment shortages and complex engineering requirements. Locking in supply early is becoming a priority.
Google is also working with nuclear power developers and long-duration storage companies as it looks to secure electricity from multiple sources.
Alphabet (GOOGL) stock was down 2.09% on Tuesday, while FRVO held gains of around 4% in afternoon trading.
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