Fervo now has $12B in orders for its geothermal power tech
First reported by TechCrunch ·
The cost of hyperscale data center power generation falls significantly as Fervo's geothermal projects become more affordable.
Geothermal energy company Fervo has secured $11.9 billion in contracted revenue, a significant increase from the previous quarter's $7.2 billion. This surge in orders is attributed to the company meeting its deadlines and hyperscalers seeking reliable electricity for AI data centers. Fervo is on track to complete a 396-megawatt power plant for Google by the end of 2028, following the earlier completion of a 100-megawatt plant. Both projects are located at Cape Station in Utah, a site now estimated to potentially generate 8.4 gigawatts, double previous estimates. The company's modular GeoBlock design allows for phased construction, enabling hyperscalers to integrate power as needed. Despite an operating loss of $43.7 million, Fervo holds $1.9 billion in cash and equivalents. The cost per kilowatt for its projects has decreased, with the Google project costing $5,500 per kilowatt, a substantial drop from the initial $7,000 per kilowatt.
Fervo's success underscores the growing demand for consistent, high-capacity energy sources to fuel AI infrastructure, positioning geothermal as a viable alternative to traditional power generation. The company's ability to offer phased power delivery, tailored to data center needs, provides a competitive edge over slower-to-deploy large-scale energy projects. This modular approach allows hyperscalers to manage power consumption and deployment more flexibly, aligning with the rapid scaling of AI workloads.
The company's ongoing efforts to reduce construction costs, aiming for $3,000 per kilowatt, could eventually make its power offerings highly competitive against even current natural gas prices. If Fervo achieves its cost targets, it could reshape energy procurement strategies for major tech companies, potentially leading to more predictable and cost-effective energy solutions for the booming AI sector.
AI-written summary. May contain errors.