Google Signs Record Geothermal Power Deal with Fervo

Geothermal energy project developer Fervo Energy announced a new 396 MW power purchase agreement (PPA) with Google to provide the tech giant with carbon-free energy from its Cape Station project in Utah, marking the largest enhanced geothermal PPA to date globally.

As part of the new agreement, Fervo will offer Google an option to expand its offtake by approximately 600 MW, for a total of nearly 1 GW, by June 2030. Shares in Fervo, which IPOed earlier this year, jumped 25% following the announcement.

Founded in 2017, Houston, Texas-based Fervo Energy focuses on the development of enhanced geothermal systems (EGS) projects to deliver carbon-free energy. The company uses techniques utilized by the oil and gas industry such as horizontal drilling and distributed fiber optic sensing to transform reservoirs of hot rock beneath the earth’s surface into clean energy sources.

Fervo is currently developing its first greenfield development, Cape Station, in Beaver County, Utah. The project produces energy by injecting water into hot subsurface rock formations, extracting the heated water, and using it to generate electricity.

Cape Station is expected to begin delivering first power to the grid in 2026, reaching approximately 100 MW of capacity by early 2027. The new PPA is part of the ongoing expansion of Cape Station beyond its initial 100 MW phase.

Tim Latimer, CEO and Co-Founder of Fervo Energy, said:

“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. This new PPA is part of our repeatable commercial model that enables us to meet customer needs and directly deliver clean, firm power to large electricity users.”

The new agreement forms part of a long-term collaboration between the companies, beginning with Fervo’s commercial pilot project in Nevada, Project Red that came online in 2023, followed by a 115 MW PPA with Google and NV Energy in June 2024. Google also invested in Fervo prior to its IPO.

Google has significantly accelerated its clean energy purchase activity in recent years as its datacenter buildout footprint has expanded. The company’s recent Environmental Report indicated its largest ever annual increase in electricity demand, rising 37% in 2025, yet noted that Google achieved a 2% reduction in Scope 1 and 2 greenhouse gas emissions during the year, crediting its massive clean energy purchase program as a key factor in decoupling its energy use from emissions.

Despite the progress on controlling direct emissions, however, the company’s value chain emissions increased significantly during the year, and Google acknowledged in the report that its “moonshot” climate goals, including its  24/7 carbon-free energy (CFE) ambition, are becoming harder to achieve, as its AI infrastructure buildout accelerates faster than the grid is decarbonizing.

The companies said that Google will purchase energy from the new geothermal project as a foundational building block for a potential data center in Utah.

Lucia Tian, Director of Advanced Energy Technologies at Google, said:

“The next chapter of advanced power generation technology is being written in Utah. 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.”