Google Signs Deal to Use Geothermal Energy at its Nevada Data Centers

Renewable energy company Ormat Technologies has signed an agreement with Google to deliver up to 150 megawatts of geothermal power to the tech giant’s Nevada data centers, adding continuous clean electricity as artificial intelligence operations push energy consumption higher. New geothermal capacity comes online between 2028 and 2030 under NV Energy’s Clean Transition Tariff, which allows major electricity buyers to purchase renewable generation while covering full costs themselves rather than passing expenses to other utility customers.

Geothermal energy taps heat from deep underground to generate electricity that runs continuously, unlike solar panels or wind turbines that depend on weather conditions. Operating as a baseload power source around the clock makes geothermal essential for data centers that must maintain uninterrupted electricity flow to run search engines, cloud services, and AI systems.

Data centers already consume massive amounts of power, and AI computing has accelerated that demand significantly over the past year.

Ormat plans to build multiple geothermal facilities throughout Nevada under the agreement. Contract terms take effect once the first facility starts generating electricity and extend 15 years after the final project becomes operational.

The company operates nearly 1,700 megawatts of capacity globally and has decades of experience building geothermal plants that convert underground heat into electricity. Earlier geothermal deals from Google include a 10-megawatt arrangement in Taiwan and a separate 115-megawatt contract with Fervo Energy, also in Nevada.

Adding 150 megawatts represents a substantial boost to Google’s clean energy portfolio. That amount could provide enough energy for tens of thousands of residential homes, though data centers consume electricity at much higher rates. Projects come online gradually, with initial facilities expected by 2028 and additional capacity added through 2030 as Ormat builds out the portfolio in stages.

Carbon-free energy goals drive Google’s strategy, with the company targeting 24/7 operation on clean power by 2030 across all data centers and offices. Geothermal fits that objective by providing consistent electricity that complements other renewable sources like wind and solar.

Meeting growing demand from AI services and cloud computing without increasing carbon output requires reliable clean energy sources. Under the tariff structure, Google covers all electricity costs, preventing financial burdens on other customers while funding new generation capacity.

Tech companies have accelerated their move toward geothermal recently. Fourteen geothermal power purchase agreements totaling 635 megawatts were signed in 2025 alone, three times more than in 2024. Data centers now account for 60 percent of new geothermal capacity.

Microsoft secured a 120-megawatt agreement in Iceland, while Switch signed a 20-year contract with Ormat for 13 megawatts from Nevada’s Salt Wells plant. These deals reflect growing recognition that solar and wind alone cannot supply the constant power computing operations require.

As companies like Turbo Energy S.A. (NASDAQ: TURB) continue to expand their footprint in different markets, the uptake of photovoltaic energy will continue to grow as alternatives like geothermal energy also gain traction. This will trigger an acceleration in the pace at which the world transitions away from fossil fuels.

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