Google signs 396 MW geothermal deal with Fervo for Utah data center
Google has signed a significant agreement with Fervo Energy to purchase 396 megawatts of geothermal power, intended to serve a potential data center in Utah. This deal highlights the growing demand for reliable, carbon-free electricity for the tech industry's expanding AI and data center operations. The project by Fervo Energy in southwestern Utah is expected to begin commercial operations in 2028.
Google has finalized a substantial agreement to procure 396 megawatts of geothermal energy from Fervo Energy, aimed at powering a prospective data center in Utah. This move underscores the technology giant's strategy to secure a consistent supply of carbon-free electricity for its burgeoning data center infrastructure and AI operations, which demand round-the-clock power.
The power will originate from Fervo Energy's Cape Station enhanced geothermal systems project in southwestern Utah, with commercial operations anticipated to commence in 2028. The agreement includes an option for Google to expand its purchases by approximately 600 MW by June 2030, potentially bringing the total commitment to nearly 1 gigawatt. This marks the world's largest enhanced geothermal power purchase agreement to date and has positively impacted Fervo's investor outlook.
While the electricity is earmarked for a potential Utah data center, Google emphasizes that the final location and development of the facility are contingent on engineering reviews, state and local approvals, and other commercial considerations. The deal signifies a strategic shift towards firm, carbon-free energy sources as the tech industry grapples with rapidly escalating electricity demands for AI and computing infrastructure.
Fervo Energy, a Houston-based company, is leveraging drilling techniques from the oil and gas industry to create engineered geothermal reservoirs, expanding geothermal power's availability beyond natural sites. The Cape Station project, backed by over $2 billion in investment, is slated to become one of the largest commercial demonstrations of this technology.