Fervo Energy, a geothermal power company backed by Bill Gates, has signed a landmark 396-megawatt power purchase agreement with Google, significantly expanding their existing partnership. The deal, announced this week, covers electricity from Fervo’s Cape Station project in southwestern Utah, with power delivery expected to begin in the third quarter of 2028.
Google plans to use this carbon-free electricity as a foundational energy source for a potential new data center in the state. The agreement marks the largest enhanced geothermal power purchase deal ever signed, coming at a time when hyperscalers across the United States are racing to secure reliable electricity for growing artificial intelligence infrastructure demands.
Under the terms, power will be delivered through four separate 99-megawatt blocks over a 15-year term. Google also holds an option to expand its purchase by roughly 600 additional megawatts by June 2030, which could push total contracted capacity to nearly one gigawatt.
Fervo CEO Tim Latimer emphasized that the agreement demonstrates enhanced geothermal systems are ready to power next-generation computing infrastructure. “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,” Latimer said.
Lucia Tian, Google’s Director of Advanced Energy Technologies, noted that the project will drive real economic benefits for the local community and help lower long-term energy costs by making geothermal power more affordable and accessible.
The partnership dates back to 2021, when Google first collaborated with Fervo to jointly develop next-generation geothermal projects. Their pilot project in Nevada, known as Project Red, went live in 2023 and continues to supply power to the local grid, including Google’s own data centers in the state. In June 2024, the two companies signed a smaller 115-megawatt deal in Nevada alongside utility NV Energy.
Fervo leverages drilling techniques borrowed from the oil and gas industry to tap underground heat more efficiently. This approach is quickly becoming an attractive alternative to solar and wind, as it can deliver steady, round-the-clock power without depending on weather conditions.