Google digs deep to power AI expansion with 150 MW geothermal deal
Summary
Ormat Technologies has agreed with NV Energy to supply up to 150 megawatts of geothermal power to support Google’s datacentre expansion in Nevada, pending state approval. The plants could start producing between 2028 and 2030 and are expected to operate for at least 15 years. This deal would more than double the geothermal power committed to Google’s Nevada operations and follows earlier geothermal trials and expansions with partners such as Fervo Energy.
Key Points
- Ormat will supply up to 150 MW of geothermal power via NV Energy to back Google datacentres in Nevada.
- Production is conditional on state Public Utilities Commission approval; expected online dates are 2028–2030.
- The move builds on earlier geothermal projects: Fervo and Google ran trials using enhanced geothermal systems reaching depths of ~8,000 feet (≈2,438 metres).
- Enhanced geothermal requires deep drilling and rock fracturing to circulate water and generate steam — technically demanding and capital-intensive.
- Geothermal could meet a significant portion of future datacentre demand: a Rhodium Group report suggested up to 64% of expected growth by the early 2030s, but at a likely ~20% premium over regional power prices.
- Other hyperscalers, including Meta, are also investing in geothermal, indicating industry interest in subsurface, firm clean power for AI workloads.
Context and relevance
AI datacentres are driving a sharp rise in power demand. Hyperscalers are looking for low-carbon, dispatchable sources to avoid over-reliance on grid gas or intermittent renewables. Geothermal — particularly enhanced geothermal systems (EGS) that borrow drilling and fracturing techniques from oil and gas — offers firm baseload power close to datacentre sites in regions with suitable geology.
However, EGS is technically complex and more expensive than some regional grid supplies. Its wider adoption depends on developers accepting higher power costs, and on policy support such as tax credits to make projects economically viable. For infrastructure planners, cloud customers and policy makers, this deal signals that major cloud providers are willing to back non-traditional, capital-heavy clean power solutions to sustain AI growth.
Author style
Punchy — this isn’t just another PPA. It’s a clear signal that hyperscalers are betting serious capex on firm, clean power sources to keep the AI expansion running without bloating carbon footprints. If you work in cloud infra, energy, or policy, the details matter.
Why should I read this?
Short version: if you care where the electricity that runs big AI models comes from (and who pays for it), this is the kind of move that changes the playing field. Google is doubling down on geothermal — that means more drilling, engineering headaches, and possible higher bills, but also a path to steadier, lower-carbon power for massive datacentres. Worth a skim if you’re tracking AI infrastructure or energy policy.