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Google Signs 396MW Enhanced Geothermal PPA with Fervo Energy for Utah Data Center Power

By: IDCNOVARegion: North America
Google has entered into a Power Purchase Agreement (PPA) with Fervo Energy, a leading enhanced geothermal systems (EGS) developer, to procure 396MW of clean, firm power from the Cape Station facility currently under construction in Utah. The agreement marks the largest geothermal offtake to date in the sector and underscores a growing trend among hyperscale cloud providers to secure around-the-clock renewable energy for their expanding data center footprints.

The Cape Station GeoCluster, situated in Beaver County, Utah, is expected to begin commercial operations in 2028. The electricity generated will be directed toward a potential data center development in the state, although final plans for that facility remain contingent on engineering feasibility, state and local permitting, and commercial conditions. The plant is designed to reach a capacity of 500MW, with the potential to expand beyond 1GW in later phases. Under the terms of the PPA, Google holds an option to increase its contracted offtake to 996MW by June 2030, providing a clear pathway for scaling the partnership as demand grows.

This agreement builds on a sustained collaboration between the two companies that dates back to 2021, when Google partnered with Fervo on a small-scale pilot project in Nevada that came online in 2023. That initial success led to a subsequent 115MW PPA, developed alongside utility partner NV Energy, designed to deliver geothermal power into the Nevada grid. Google has also made direct equity investments in Fervo, leading the company's Series B funding round last year, which raised $462 million. In May, Fervo completed its initial public offering, achieving a valuation of $10 billion.

"This agreement reinforces that EGS is ready to power the next generation of computing infrastructure," said Tim Latimer, CEO and co-founder of Fervo Energy. "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. We're proud to do this work in close partnership with the communities of Southwest Utah and with a partner that upholds our community-first values."

Lucia Tian, director of Advanced Energy Technologies at Google, echoed those sentiments, stating: "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."

Enhanced geothermal systems borrow technology and techniques from hydraulic fracturing to create permeability in underground reservoirs that would otherwise be inaccessible, enabling the production of commercially viable quantities of geothermal brine. This approach unlocks significantly more geothermal potential than conventional methods and achieves much higher capacity factors, making it an increasingly attractive option for data center operators seeking reliable, carbon-free power.

Google is not alone in backing geothermal energy among major cloud providers. Meta has signed offtake agreements with two EGS developers in the United States, including a 150MW deal with Sage Geosystems for a project east of the Rocky Mountains and a separate 150MW agreement with XGS Energy for a development in New Mexico. Microsoft has also entered the space, signing a ten-year PPA with Contact Energy in New Zealand in 2023 and partnering with G42 to build a data center in Kenya that will run exclusively on geothermal power.

The deal with Fervo highlights the strategic importance of firm, dispatchable clean energy for hyperscale data center operators, who face mounting pressure to align their growth with sustainability targets while ensuring grid reliability. As the digital economy continues to expand, agreements of this scale are likely to become more common, signaling a broader shift toward advanced geothermal as a credible solution for round-the-clock power needs.