Geothermal energy company Fervo has achieved a major milestone as technology giant Google agreed to purchase nearly half a gigawatt of electricity. This power will supply a planned new data center located in the state of Utah, marking a significant step for corporate clean energy procurement.

The formal power purchase agreement was announced on a Tuesday, committing Google to buying 396 megawatts of electricity. The energy will be sourced directly from Fervo’s Cape Station power plant situated in Utah, which is scheduled to officially come online in the year 2028.

Addition initial purchase, agreement grants

In addition to the initial purchase, the agreement grants Google a specific option through June 2030 to acquire an additional 600 megawatts of power. This expansion flexibility arrives as Google and other major tech hyperscalers actively scour the country for new and reliable sources of electricity.

For many years, Google has maintained its position as one of the largest corporate purchasers of clean energy in the United States and global markets. The company has routinely bought electricity generated from wind, solar, and battery storage projects to fulfill its strict corporate promise to reach net-zero carbon emissions.

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However, that ambitious environmental goal became considerably harder to reach last April after Google inked a separate deal with data center developer Crusoe. That arrangement involved securing 933 megawatts of natural gas power to be generated in the state of Texas.

The new agreement with Fervo could help Google fuel its rapidly growing artificial intelligence ambitions without severely imperiling its long-term net-zero climate goals. Enhanced geothermal power offers a steady, carbon-free baseload that complements intermittent wind and solar energy supplies.

Fervo is currently permitted to develop up to 2 gigawatts of geothermal energy at the Cape Station site. Sarah Jewett, who serves as Fervo’s senior vice president of strategy, noted in a previous statement that a third-party engineer indicated the location holds enough underground heat to generate twice that amount.

If the site is fully developed to its maximum potential, those 4 gigawatts would roughly double the entire existing geothermal generating capacity in the United States. That projection is supported S. Department of Energy.

Industry experts suggest it is entirely possible that Google’s current gigawatt-scale deal could grow even larger if Fervo’s ongoing drilling and plant operations proceed according to plan. Enhanced geothermal technologies, such as the innovative methods developed

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The latest transaction between Fervo and Google further strengthens a long-standing business relationship that has spanned more than five years. During the early stages of this partnership, Google purchased some of the very first electrons produced

Most recently, Google participated directly Although Fervo’s stock experienced a strong pop on its first day of trading, it subsequently shed those initial gains and more over the following months.

News of the substantial Google power purchase agreement triggered a sharp positive reaction in the market, driving Fervo's stock price up Following this surge, some traders chose to take profits, leading to a modest adjustment in the stock's valuation the following day.