Fervo Energy has secured a 396-megawatt power purchase agreement with Google, the largest enhanced geothermal systems deal ever signed, as the two companies move to accelerate development of a major clean energy project in Utah expected to come online in 2028.

A Record-Breaking Deal for Enhanced Geothermal

Fervo Energy, which trades on Nasdaq under the ticker FRVO, announced the agreement on September 1, 2026, describing it as a foundational step in expanding its Cape Station GeoCluster project in Utah.

The PPA marks a significant commercial milestone for the enhanced geothermal systems industry, which has historically struggled to compete with the scale and speed of wind and solar development.

Under the terms of the agreement, Google will purchase carbon-free energy from the Cape Station project, with the power intended to serve as the foundation for a potential data center facility in Utah.

The project is expected to deliver electricity around the clock, a characteristic that distinguishes geothermal from intermittent renewable sources.

As part of the agreement, Fervo has also offered Google an option to expand its energy offtake by approximately 600 megawatts, which would bring the total to nearly one gigawatt by June 2030.

The company noted that final data center plans remain subject to a range of factors, including engineering feasibility, state and local regulatory approvals, and commercial conditions.

Scaling Up Cape Station Beyond Its Initial Phase

The Cape Station GeoCluster represents an expansion of Fervo's operations well beyond the project's initial 100-megawatt phase.

The company has described its commercial approach as based on standardized, repeatable GeoBlock execution, a modular methodology it says allows it to scale power delivery and drive down development costs over time.

Fervo said the new PPA is part of what it characterized as a repeatable commercial model designed to meet growing customer demand for firm, dispatchable clean power.

The company also noted that its GeoCluster approach, paired with Utah's SB132 legislation, could provide both Fervo and Google with optionality on direct-to-load contracting, subject to regulatory approvals.

Tim Latimer, CEO and Co-Founder of Fervo Energy, said the agreement demonstrates that enhanced geothermal systems are ready to power large-scale computing infrastructure.

He pointed to rising electricity demand as a driver for energy resources that can operate continuously and be deployed at scale. Latimer also emphasized the company's commitment to community engagement, describing its approach as grounded in transparency, two-way dialogue with local communities, and sustained local investment.

Building on an Existing Partnership with Google

The relationship between Fervo and Google did not begin with this agreement. The two companies first partnered through Project Red, Fervo's commercial pilot project in Nevada, which came online in 2023.

That project delivers power to the local grid, including to Google's data centers operating in Nevada.

Following the success of Project Red, the two companies signed a 115-megawatt PPA in June 2024 involving NV Energy.

That earlier deal helped establish what Fervo described as the Clean Transition Tariff, a mechanism designed to allow Google to bring more geothermal energy onto the Nevada grid without passing the project's costs on to everyday utility customers.

The Utah agreement represents a significant scaling of that partnership, moving from a pilot-stage project and a three-party state utility deal to a direct, nearly 400-megawatt agreement tied to one of the most ambitious enhanced geothermal developments currently underway in the United States.

Google's Perspective on the Project

Michael Terrell, Head of Advanced Energy at Google, described the project as part of the next chapter in advanced power generation technology.

He said the Utah project is expected to drive economic benefits to the local community and contribute to long-term reductions in energy costs by making enhanced geothermal more affordable and accessible over time.

Google, a subsidiary of Alphabet Inc., has made a series of investments in clean energy procurement in recent years as demand for electricity from its data center operations has grown alongside the rapid expansion of artificial intelligence workloads.

The company's mission, as it describes it, is to organize the world's information and make it universally accessible, and its energy strategy has increasingly focused on securing carbon-free power that can match data center demand at all hours of the day.

What Enhanced Geothermal Means for Grid Reliability

Enhanced geothermal systems differ from conventional geothermal power in that they do not require naturally occurring hydrothermal reservoirs. Instead, EGS technology involves drilling into hot rock formations and engineering fluid circulation systems to extract heat and generate electricity.

Fervo has applied techniques borrowed from the oil and gas industry, including horizontal drilling and hydraulic stimulation, to make this process commercially viable at utility scale.

The around-the-clock generation profile of geothermal power has attracted significant interest from large electricity consumers, particularly technology companies operating data centers that require continuous, reliable power.

Fervo said the Cape Station project is designed to deliver this kind of firm capacity without additional cost to existing ratepayers on the broader grid.

The company said the deal unlocks new electricity capacity and reaffirmed its commitment to responsible growth in the communities of Southwest Utah where the project is located.