Tech Giant Wants To Power Massive Data Center With Geothermal Energy

Google is betting big on geothermal energy as a viable power source for its sprawling data center buildout.

Geothermal developer Fervo Energy on Tuesday signed the deal with Google for its Cape Station geothermal project in Utah, the Wall Street Journal reported, with the agreement showcasing big tech’s push for more reliable and clean energy sources to power energy-hungry data centers. The deal would provide Google nearly 400 megawatts, roughly enough power for a midsize city.

Geothermal energy, which has typically been hindered by high costs and longer development time, involves capturing heat inside the earth, according to the U.S. Energy Information Administration. Fervo plans to use oil-and-gas drillers to create geothermal areas deep in the earth for electricity, according to The Wall Street Journal. The Houston-based company plans to spend more than $2 billion for the Cape Station project and believes it will start delivering power to the Utah grid later in 2026, according to Fervo. 

“The exciting thing for us is this has now infused us with the capital needed to actually grow at the pace we’ve always wanted to, to grow in terms of putting gigawatts on the grid and solving this energy challenge,” Tim Latimer, the CEO of Fervo, told the New York Times in May, believing that geothermal may help meet the country’s energy needs to power data centers.

The Trump administration in February announced a $171 million funding opportunity to seed the next generation of geothermal projects.

“Thanks to President Trump’s America First Energy Agenda, these demonstrations and drilling activities will help us realize the enormous potential of geothermal to spur domestic manufacturing, enable data center growth, and provide affordable, reliable, and secure energy solutions nationwide,” Department of Energy Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit said that month.

The Cape Station project may expand geothermal energy access, although it remains twice as expensive as natural gas plants, according to the New York Times. Fervo’s financial filings, however, state that it would provide cheaper electricity compared to newer nuclear power plants.

Some question if geothermal hotspots may eventually cool off as water is pumped through them for electricity generation, forcing energy producers to drill new wells, which would raise costs. Others worry that it could create a higher risk of seismic activity or even contaminate local water sources.

“No energy source is completely devoid of environmental or public health risk,” Jeff Deyette, a clean energy expert at the Union of Concerned Scientists, said.