The race for artificial intelligence is no longer fought only in laboratories or chip factories. It is moving towards much more basic and, at the same time, more critical terrain: electricity. At a time when data centers are increasing their energy consumption and the electrical grid is beginning to show signs of saturation, an American geothermal startup has just closed one of the largest financing rounds in the sector. It is called Fervo Energy, it has raised $462 million and, among its investors, is Google.
It is not just another financial movement. It is a clear sign of where big technology companies are looking to sustain their ambitions with artificial intelligence.
First commercial project. The company has closed this financing in a Series E – one of the last phases of private investment before a possible IPO – aimed not at research, but at the deployment of large-scale energy infrastructure. The round, led by B Capital as lead investor, will serve to accelerate the construction of Cape Station, its geothermal plant in Utah, and advance the development of other projects. In other words, moving from technology demonstration to commercial production of firm electricity for the grid.
In addition, the round has aroused the interest of a broad group of industrial, financial and technological investors. Among the new names are AllianceBernstein, Mitsui, Mitsubishi Heavy Industries, Breakthrough Energy Ventures and, especially significantly, Google. As reported by TechCrunchFervo has raised nearly $500 million in equity and debt in the last year alone, reflecting an unusual investment appetite for a technology that for decades was considered marginal.
The Google entry. Fervo is not just a climate bet or an impact investment: it is a direct energy supplier for data centers. The company already maintains an agreement with Google to supply geothermal electricity to its facilities, something that turns the technology company into a client and investor at the same time.
This move fits with a broader trend. The big tech companies they have stopped trusting only in the traditional electricity market. The explosion of generative AI has multiplied the demand for continuous, stable and emission-free energy, a profile that neither solar nor wind power alone can guarantee without massive battery backup. On the other hand, geothermal energy offers firm electricity 24 hours a day.
How does the Fervo bet work? Fervo’s key It’s in your technology of Enhanced Geothermal Systems (EGS). Unlike traditional geothermal energy – which depends on natural hot aquifers – Fervo drills hot rock, injects water and creates artificial reservoirs that allow steam to be generated in a controlled manner. A direct adaptation of hydraulic fracturing and directional drilling techniques developed over decades by the oil and gas industry. It is no coincidence: many Fervo engineers come from that sector.
The flagship project is Cape Station, located in Beaver County, Utah. According to the company’s planswill begin supplying 100 megawatts in 2026 and will reach 500 megawatts in 2028. One of the key factors is speed, as the company has drastically reduced the drilling time for its wells: from about a month in its first projects to a current average of about 15 days. As Sarah Jewett, senior vice president of strategy, explained, to TechCrunchapproximately half of the cost of a well depends on drilling time. Reducing it is synonymous with economic viability.
AI as the engine of the new energy map. The rise of Fervo cannot be understood without the pressure that artificial intelligence puts on energy infrastructure. According to the International Energy Agencythe electrical consumption of data centers could double before 2030. An analysis by the Rhodium Group goes further and estimates that advanced geothermal could cover up to two thirds of new energy demand of these centers in the United States.
Google is not alone in this race. The company is simultaneously exploring the reopening of nuclear plantsthe development of small modular reactors (SMR) and even experimental projects as solar-powered orbiting data centers. The logic is the same in all cases: ensure its own, stable, long-term electricity supply.
In the words of the CEO of FervoTim Latimer: “There is a huge appetite to understand how the history of electricity demand is going to be resolved.” The answer, increasingly, lies in energy sources that previously seemed secondary.
A sector that matters again. For years, geothermal energy was relegated to wind and solar energy. Today, United States live a true renaissance of the sector. The combination of new technologies, private capital, institutional support and demand from Big Tech is changing the landscape.
Fervo is considered a pioneer within this new ecosystem. According to TechCrunchthe company is focused for now on the western United States, where the hot rock is closer to the surface, but does not rule out expanding to other states or abroad when its technology is even more optimized.
The subsoil as a competitive advantage. While artificial intelligence is presented as the most ethereal technology of our time, its expansion depends on something deeply physical: constant, cheap and clean megawatts. In this context, Fervo represents more than just an energy startup: one more—but key—piece in the new infrastructure that supports the digital age.
Google didn’t get here by chance. He has been exploring all possible avenues for some time to ensure stable power for his AI. And in that strategy of not closing any doors, while some look to the sky, others – like Fervo – look underground, kilometers underground, where the planet’s heat is beginning to emerge as one of the most solid responses.
Image | FervoEnergy and freepik
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