Fervo Energy shares jumped sharply after the geothermal power developer announced a major agreement to supply Google with 396 MW of electricity from its Cape Station project in Utah. Reuters reported that the deal sent Fervo shares nearly 14% higher in premarket trading, while the stock later surged about 28%. (Sources: Reuters, Barron's, TradingView/Stocktwits, Fervo Energy)

The announcement comes as large technology companies seek more firm power to support expanding AI data centres, which can require electricity around the clock. In that context, geothermal has drawn attention because it can supply continuous output rather than depending on weather or time of day, making long-term contracts like this one an important part of how developers finance large projects.

Google signs record 396 MW geothermal deal

The power purchase agreement covers 396 MW from Cape Station, with operations expected to begin in 2028. Fervo said the agreement represents the world's largest enhanced geothermal power purchase agreement to date.

Deal could scale toward 1 GW

Google will also have an option to expand its power purchase by another 600 MW by June 2030. That could take the total commitment to nearly 1 GW, significantly increasing Fervo's contracted demand and development visibility.

AI data centres drive clean power demand

The agreement highlights the growing need for reliable, round-the-clock electricity as AI data centres expand. Geothermal power can provide continuous clean energy, making it increasingly attractive to technology companies seeking alternatives to intermittent renewable sources.

What it means for FERVO stock

The Google agreement strengthens Fervo's growth story and provides greater visibility for its geothermal projects. However, the stock had fallen substantially since its May debut before the latest rally, meaning investors may continue to focus on execution, project timelines and the company's ability to scale geothermal capacity.