US technology company Google has signed a 396MW power purchase agreement (PPA) with Fervo Energy to supply electricity from an enhanced geothermal development in Utah.

Fervo described the agreement as the world’s largest enhanced geothermal systems (EGS) PPA to date. The contracted power will come from an expansion of the company’s Cape Station GeoCluster, which is expected to begin operating in 2028.

The electricity is intended to support a potential Google data centre in Utah, linking the commercial development of next-generation geothermal technology with the rapid growth of electricity demand from artificial intelligence and cloud-computing infrastructure.

Under the agreement, Google will also have the option to purchase approximately 600MW of additional capacity. Exercising the option would raise its total potential offtake from Cape Station to nearly 1GW by June 2030.

Unlike conventional geothermal developments, which depend on naturally occurring reservoirs of hot water, EGS projects create engineered underground reservoirs by drilling into hot rock and circulating water through fractures. The approach could expand geothermal generation beyond regions with easily accessible hydrothermal resources while providing continuous power independent of weather conditions.

“This agreement reinforces that EGS is ready to power the next generation of computing infrastructure,” said Tim Latimer, CEO and co-founder of Fervo Energy.

The agreement extends an existing relationship between the companies. Their first commercial pilot, Project Red in Nevada, began supplying electricity to the local grid in 2023. Fervo subsequently signed a 115MW agreement with Google and utility NV Energy in 2024.

The latest PPA supports Cape Station’s expansion beyond its initial 100MW phase. Fervo plans to develop the site through standardised, modular generating units as it seeks to lower construction costs and establish a repeatable model for utility-scale geothermal development.

However, the additional 600 MW remains an option rather than a firm purchase commitment. Google’s proposed Utah data centre and the associated power arrangements also remain subject to engineering assessments, regulatory approvals and commercial conditions.