Google signs 150 MW geothermal deal to power Nevada data centers

Google expands Nevada geothermal capacity

Ormat Technologies and NV Energy signed an agreement to supply 150 megawatts of geothermal power to the Nevada grid to support Google’s data center growth. The deal significantly increases the amount of carbon-free energy available to Google’s massive server farms in the region. Ormat expects these geothermal plants to begin producing power between 2028 and 2030.

The contract remains subject to approval by the Nevada Public Utilities Commission later this year. If approved, the agreement provides a 15-year term for power delivery. This move follows Google’s long-term strategy to run its entire business on carbon-free energy by 2030.

Google has pursued geothermal energy since at least 2008 to offset the massive carbon footprint of its infrastructure. The company previously partnered with Fervo Energy to bring an "enhanced geothermal plant" online in 2023. That initial Nevada facility generates heat from the Earth’s crust to turn water into steam and drive turbines.

How enhanced geothermal systems work

Enhanced geothermal systems (EGS) use drilling techniques borrowed from the oil and gas industry to access heat deep underground. Traditional geothermal relies on naturally occurring hot water reservoirs, but EGS creates its own reservoirs. Engineers drill two parallel wells to a depth of approximately 8,000 feet.

The process involves fracturing the rock between these two wells to create a pathway for water. Operators pump water down one well, where the Earth’s internal heat raises the temperature to more than 190 degrees Celsius. This hot water returns to the surface through the second well, where it flashes into steam to power electricity-generating turbines.

The initial Fervo trial in Nevada was a small-scale proof of concept. It generated 3.5 megawatts of power, which is enough to power roughly 2,600 homes but barely makes a dent in a modern data center's needs. Following that success, Google and Fervo signed a larger agreement to add 115 megawatts to the grid.

AI drives massive energy demands

The surge in generative AI development has fundamentally changed the energy requirements for big tech companies. Standard data centers from a few years ago required significant power, but AI-specific clusters consume electricity at an unprecedented scale. Industry analysts expect modern AI data centers to exceed 1 gigawatt of compute capacity within the next few years.

Google’s 150-megawatt deal with Ormat helps bridge the gap, but it highlights the sheer volume of energy required to sustain modern LLMs. Training and running these models requires thousands of specialized chips that run hot and consume constant power. Geothermal energy provides a "baseload" source, meaning it runs 24/7 unlike solar or wind power.

• 24/7 Reliability: Geothermal plants do not depend on weather conditions or time of day.
• Small Footprint: Geothermal facilities require less land per megawatt than solar or wind farms.
• Scalability: Enhanced drilling techniques allow companies to build plants in locations previously considered unsuitable for geothermal.

This reliability makes geothermal an ideal partner for the power-hungry infrastructure required for Google Gemini and other AI services. While solar and wind are cheaper, they require massive battery installations to provide the steady stream of electrons that servers demand. Geothermal eliminates the need for that storage.

Meta joins the geothermal race

Google is no longer the only hyperscaler betting on the heat beneath the surface. Meta struck its own deal in 2024 with Sage Geosystems to deliver up to 150 megawatts of geothermal power. This partnership aims to support Meta’s expanding fleet of data centers as the company pivots toward its own AI initiatives.

The Meta and Sage agreement utilizes similar "hot dry rock" technology to harvest energy. As tech giants face increasing pressure to meet sustainability goals, they are moving away from simply buying carbon credits. They are now directly funding the construction of new, clean energy sources to ensure the grid can handle their expansion.

The competition for clean energy is intensifying as land and power availability become the primary bottlenecks for data center construction. Companies that secure stable, carbon-free power sources now will have a significant advantage in the AI race. Nevada has become a focal point for this competition due to its unique geology and favorable regulatory environment.

The high cost of clean energy

Geothermal power is currently more expensive than traditional fossil fuels or established renewables like wind. A report from the Rhodium Group estimates that geothermal could meet 64 percent of expected data center growth by the early 2030s. However, this growth depends on the willingness of tech companies to pay a premium.

Data center operators must be willing to pay approximately 20 percent more for geothermal power compared to regional average rates. This "green premium" covers the high cost of deep-well drilling and the experimental nature of EGS technology. Tax credits also play a vital role in making these projects financially viable for companies like Ormat and Fervo.

The federal government currently provides significant incentives for renewable energy projects through the Inflation Reduction Act. If these tax credits remain in place, the cost of geothermal is expected to drop as the technology matures. If the credits are cut, the 150-megawatt expansion projects may become harder to justify for shareholders.

Future outlook for the grid

The integration of 150 megawatts from Ormat is just the beginning of a larger shift in how the grid supports heavy industry. As Google and Meta prove the viability of EGS, other industries may follow. This could lead to a broader decarbonization of the American power grid, driven largely by the massive capital expenditures of tech companies.

Critics of the AI boom point to the staggering increase in electricity consumption as a threat to climate goals. Google’s latest environmental reports show that its total emissions have actually increased due to data center expansion. Investing in geothermal is a direct attempt to reverse that trend and decouple computing growth from carbon emissions.

Success in Nevada will likely lead to similar projects in other geologically active states like California, Oregon, and Washington. For now, the focus remains on the 2028 deadline for Ormat’s new capacity. If these plants deliver as promised, the Earth's internal heat could become the primary engine behind the next generation of artificial intelligence.