Google Buys 396 MW of Fervo Geothermal Power for Utah AI Data Center
Google will buy 396 MW from Fervo's Utah geothermal plant, with an option for 600 MW more, to power AI growth while pursuing its 2030 net-zero target.
Summary
Google agreed on September 1, 2026, to buy 396 MW from Fervo’s Cape Station geothermal plant for a planned Utah data center when the facility comes online in 2028. Google can purchase another 600 MW through June 2030. The power supports its AI expansion and 2030 net-zero target, which became harder after an April agreement with data center developer Crusoe for 933 MW of natural gas generation in Texas.
Fervo is permitted to develop 2 GW at Cape Station. In May, strategy chief Sarah Jewett said a third-party engineer estimated the site contains enough heat for 4 GW, roughly double total U.S. geothermal generating capacity, according to the U.S. Department of Energy. The agency estimates enhanced geothermal, which accesses deeper heat, could produce up to 57 TW of electricity. Google and Fervo have worked together for more than five years, with Google buying early output and investing in Fervo’s final funding round before its public listing. Fervo shares, already below their first-day gains, jumped about 30% on September 1 before surrendering some of the increase on September 2.
Positives
- Google committed to buying 396 MW of geothermal power for its planned Utah data center from 2028.
- Google can purchase another 600 MW from Cape Station through June 2030.
- Cape Station could hold 4 GW of geothermal potential, roughly double current U.S. geothermal generating capacity.
- Enhanced geothermal technology could unlock up to 57 TW of U.S. electricity, according to the Department of Energy.
- Fervo shares rose about 30% on September 1 after the Google agreement emerged.
- Google’s geothermal purchase supports AI expansion without significantly undermining its 2030 net-zero target.
Risks & concerns
- Cape Station’s contracted 396 MW is not expected online until 2028.
- Google’s additional 600 MW remains optional rather than committed through June 2030.
- Google’s April purchase of 933 MW of Texas natural gas power from Crusoe complicates its 2030 net-zero target.
- Fervo holds permits for 2 GW, while the larger 4 GW resource remains a third-party engineering estimate.
- Fervo shares had erased their first-day gains before the deal and surrendered part of their 30% jump on September 2.