Google is making a significant investment in geothermal energy as it looks to expand its data center infrastructure sustainably.
On Tuesday, Fervo Energy announced that it has secured a deal with Google for its Cape Station geothermal initiative in Utah. This agreement, reported by the Wall Street Journal, highlights the growing trend among tech giants to seek out reliable, clean energy solutions to power their data centers, which require a lot of electricity. Under the deal, Google is set to receive nearly 400 megawatts of power, enough for a medium-sized city.
Geothermal energy, while promising, has faced challenges such as high costs and extended development timelines. It revolves around harnessing the Earth’s heat, according to the U.S. Energy Information Administration. Fervo aims to leverage the expertise of oil and gas drillers to create geothermal sites deep underground. The company’s intention is to invest over $2 billion into the Cape Station project, with expectations to begin supplying energy to the Utah grid by late 2026, as per Fervo’s information.
Tim Latimer, Fervo’s CEO, expressed enthusiasm about the financing from this partnership, stating it provides the resources to grow more rapidly and address energy needs effectively. In interviews, he has pointed out the potential of geothermal energy to meet the increasing demands for power in the country.
A few months prior, the Trump administration had announced a funding opportunity of $171 million to support the next generation of geothermal projects. Kyle Haustveit from the Department of Energy highlighted the promise of geothermal energy to boost domestic manufacturing and support the expansion of data centers while providing affordable and secure energy solutions.
The Cape Station project could enhance access to geothermal energy, although it is noted that it remains twice as costly as natural gas facilities. However, Fervo has indicated that its energy provisions may be less expensive than newer nuclear plants.
Concerns have been raised about the long-term sustainability of geothermal hotspots, which could cool as water is extracted for electricity, potentially necessitating new drilling that might increase costs. Additionally, there’s a worry that such activities could lead to heightened seismic risks or water contamination.
Jeff Deyette, a clean energy expert, remarked that every energy source carries some level of environmental and public health risk.
As for Google, they did not respond to requests for comments regarding the deal. Fervo is involved in multiple geothermal initiatives, including Project Red in Nevada, which helped foster this collaboration. The power-sharing agreement with Google is expected to commence in 2028.
Lucia Tian, from Google’s advanced energy technologies team, mentioned that while details on how this energy will directly support a data center are not completely clear, they recognize its importance as a fundamental power source for future facilities in Utah.
Moreover, there’s potential for Google to expand its purchase agreement, possibly adding another 600 megawatts by mid-2030.
The U.S. currently has around 2.7 gigawatts of geothermal capacity, although it could theoretically reach 135 gigawatts through advanced drilling techniques used in the oil and gas sector. According to the International Energy Agency, the U.S. possesses the highest potential for enhanced geothermal capacity globally, followed by China.
However, obtaining permits for geothermal projects can be quite cumbersome, often taking years to navigate through federal regulations. An example is Ormat, which faced delays with a Nevada power plant project when federal approvals were stalled due to environmental protections for a local toad species.
Fervo’s arrangement with Google is seen as a crucial endorsement of geothermal energy’s role in addressing rising power demands. Sarah Jewett from Fervo believes this partnership creates a repeatable commercial model for future deployments.
Other major tech firms like Meta are exploring similar geothermal energy ventures, partnering with companies like XGS Energy and Sage Geothermal Systems for upcoming projects. The backing from large tech companies notably enhances energy developers’ ability to secure funding, given their substantial credit profiles.
