Fervo, Google sign 396-MW geothermal PPA for Utah data

Fervo Energy announced a 396-megawatt power purchase agreement with Google on Tuesday. The deal, described as the largest-ever geothermal PPA, is intended to serve as a foundational power source for a potential Google data center in Utah.

Financial services firm William Blair said the agreement increases Fervo's contracted revenue by about 65%. In a research note, the analysts stated the deal strengthens their belief that Fervo's enhanced geothermal systems provide a critical solution to address a "baseload imperative" by delivering firm, dispatchable power for AI data centers.

Project development and expansion

The power will come from Fervo's Cape Station enhanced geothermal project in Southwestern Utah. The company expects the project to come online in 2028. Fervo's strategy involves deploying standardized 50-megawatt units, called GeoBlocks, which can be combined into larger GeoClusters.

As part of the new agreement, Google holds an option to expand its power offtake by approximately 600 megawatts by June 2030. This could bring the total potential supply to nearly one gigawatt. Final data center plans remain subject to engineering feasibility, state and local approvals, and commercial conditions.

Analyst perspective on risks and market

Analysts have noted challenges alongside the deal's scale. William Blair pointed out that Fervo's stock was down 49% from its post-IPO highs as of Wednesday, citing a recent "issue of confidence." Investment firm Jefferies, in an August 14 note, described Fervo as being in a "heavy investment phase" and highlighted new, temporary transmission-related curtailment issues projected for 2027.

Despite these risks, William Blair analysts argued that "baseload power remains scarce and Fervo represents a relatively inexpensive way for investors to gain exposure to time to power baseload." They identified key risks as first-of-a-kind execution at the Cape Station project's first phase, interconnection bottlenecks, capital intensity, and competing technology paths.

History of the Google-Fervo partnership

The new PPA builds on a multi-year partnership between the two companies. Google and Fervo signed a corporate agreement to develop next-generation geothermal power in 2021. This was followed by the launch of Fervo's Project Red, a Nevada commercial pilot that came online in 2023 and began delivering power to the local grid, including Google's Nevada data centers.

Subsequent agreements have steadily increased the scale of their collaboration. In June 2024, Google and NV Energy signed a 115-megawatt PPA with Fervo. Google also participated in Fervo's $462 million Series E funding round in December 2025.

Fervo CEO Tim Latimer called the partnership important for the company's growth. In a post on X, he said, "We are excited to take the next step with them with this new 400 MW deal for enhanced geothermal power." The Cape Station project is located near the U.S. Department of Energy's Frontier Observatory for Research in Geothermal Energy.