Fervo Energy Stock Surges After Major Geothermal Power Purchase Agreement with Google
Fervo Energy (FRVO) has seen its stock rise over 28% following a significant power purchase agreement with Alphabet's subsidiary, Google. The deal involves Fervo supplying up to 396 megawatts of carbon-free geothermal energy for a potential data center in Utah under an enhanced geothermal system (EGS). This is the largest EGS PPA on record and marks progress toward meeting growing demand from AI infrastructure while addressing concerns over power consumption. The agreement supports Fervo's Cape Station project, expected to come online by 2028. Alphabet has also secured an option to expand its purchase capacity up to 600 MW by June 2030. The partnership builds on a collaboration that began in 2023 with Project Red and expanded further in 2024. Despite the recent stock surge, Fervo remains unprofitable, reporting a $55.9 million net loss for Q2 2026 while spending heavily to develop its geothermal projects.
Topics: AI Infrastructure Data Centers Energy Partnerships Geothermal Energy