Feb 17 - Ormat Technologies announced that it has entered a long-term geothermal power purchase agreement (PPA) with NV Energy to support Google’s operations in Nevada. The contract covers 150 megawatts of new geothermal capacity and will allow Ormat to develop a series of geothermal projects across the state. According to the company, the new facilities are expected to begin delivering power between 2028 and 2030.
Ormat framed the PPA as a scalable structure that lets utilities and large electricity consumers, including Google, invest in clean and dependable power while ensuring that all service costs are covered. The company said the arrangement supports a repeatable framework for deploying geothermal capacity at scale.
The deal highlights geothermal’s appeal relative to other clean technologies. Because geothermal avoids the intermittency associated with wind and solar, the technology is being reconsidered as a source of continuous, carbon-free electricity. The article notes that this resurgence is being driven in large part by Big Tech companies that need large, steady supplies of power to run energy-intensive AI data centers.
U.S. power demand is forecast to rise through this year and the next, the Energy Information Administration said in its Short-Term Energy Outlook. The EIA attributed the increase to a rapid build-out of data centers for AI and cryptocurrency, and to a broader transition toward electric heating and transport in homes and businesses. Geothermal producers have been finding new customers among Silicon Valley and other large tech firms as those companies seek the vast amounts of electricity required for their AI expansion plans.
Market reaction to the announcement was immediate. Shares of Ormat rose by more than 4.7% to $1243.54 on the news, reflecting investor interest in the company’s role supplying firm, low-carbon power to major corporate buyers.
Google emphasized the practical impact of adding geothermal generation in Nevada. Briana Kobor, Head of Energy Market Innovation at Google, was quoted on the arrangement:
"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.
The PPA represents a concrete example of how utilities, developers and large energy consumers are structuring long-term agreements to secure reliable clean energy for intensive computing needs. Ormat’s announcement signals a push to expand geothermal capacity to meet rising demand, with multiple projects planned to come online within the 2028-2030 window.
Context and implications
- Geothermal offers a non-intermittent source of clean power, which is attractive to data centers and other continuous-load users.
- The U.S. Energy Information Administration expects power consumption to increase in the near term due to data center expansion and electrification trends, underscoring the potential market for firm renewable generation.
- Big Tech’s electricity needs for AI deployments are a key driver behind renewed interest in geothermal capacity.
Market note
Ormat reported a share price increase following the PPA announcement, while the deal itself sets the stage for a multi-project development timeline through 2030. The arrangement was described by participants as covering service costs and providing a scalable approach to deploying clean, reliable power.