Fervo Energy stock jumps on Google geothermal power deal

Alphabet Inc.'s Google has entered into a major geothermal power agreement with Houston-based Fervo Energy, securing nearly 400 megawatts of clean electricity from Fervo's Cape Station project in southwestern Utah. The deal marks Fervo's largest-ever power agreement and will supply electricity intended to power future Google data center operations starting in 2028, with an option to expand capacity by an additional 600 megawatts by June 2030. Fervo Energy is investing over $2 billion in its Cape Station development, employing hydraulic fracturing techniques derived from oil and gas drilling to build enhanced geothermal reservoirs. The first phase of the project is slated to begin delivering electricity to the grid later this year, with Google using the foundational power generation to support its growing infrastructure and artificial intelligence power needs in Utah. The long-term agreement underscores big tech's surging appetite for round-the-clock zero-carbon baseload electricity to sustain rapid data center and computing expansion amid increasing grid constraints.