Jakarta, INTI - Ormat Technologies, a renewable energy firm, announced on Tuesday that it has signed a long-term geothermal power purchase agreement with NV Energy to supply energy for Google’s operations in Nevada.
The deal covers 150 megawatts of new geothermal capacity, enabling Ormat to develop a series of geothermal projects across Nevada, with planned operations coming online between 2028 and 2030.
Why It’s Important
Geothermal is emerging as a fast, carbon-free alternative to nuclear energy. Unlike wind or solar, it avoids intermittency issues, leading to a resurgence in the sector driven largely by Big Tech’s demand to power electricity-intensive AI data centers.
Ormat stated that the agreement “provides a scalable way for utilities and major users such as Google to invest in clean, reliable power while covering all service costs.”
Context
The U.S. Energy Information Administration noted in its Short-Term Energy Outlook last month that power consumption in the country is expected to rise this year and next. Growth is being driven by the rapid expansion of AI and cryptocurrency data centers, along with a broader shift by homes and businesses toward electric heating and transportation.
Geothermal producers are increasingly attracting Big Tech companies seeking the large amounts of electricity necessary for AI growth plans.
Market Reaction
Following the announcement, Ormat shares jumped more than 4.7% to $1,243.54.
Key Quote
“By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service,” said Briana Kobor, Head of Energy Market Innovation at Google.
Conclusion
The 150 MW geothermal power deal between Ormat Technologies and NV Energy highlights the growing role of renewable energy in powering Big Tech operations. By supplying Google’s Nevada data centers, the agreement demonstrates how geothermal energy can provide reliable, carbon-free power at scale. This partnership underscores the intersection of clean energy innovation and the rapidly expanding AI and data center sectors, setting a model for sustainable industrial growth.
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