Key Points:
- Ormat signed a deal to provide 150 MW of geothermal power.
- The energy will support Google’s data center operations in Nevada.
- New power plants will start running between 2028 and 2030.
- Ormat stock surged over 4.7% following the announcement.
Renewable energy company Ormat Technologies announced a major victory on Tuesday. The company signed a long-term agreement with NV Energy to supply power specifically for Google’s operations in Nevada. The news excited investors, sending Ormat’s stock price soaring more than 4.7% to reach $1,243.54.
The deal focuses on developing 150 megawatts of new geothermal energy. To meet this demand, Ormat plans to build a series of new projects across Nevada. These facilities will start producing electricity between 2028 and 2030. This timeline aligns with the growing energy needs of the tech industry.
Geothermal power is becoming a hot commodity for Silicon Valley. Unlike solar panels that need the sun or wind turbines that need a breeze, geothermal plants use the Earth’s natural heat. This allows them to generate electricity 24 hours a day, seven days a week. For companies running massive servers that never sleep, this constant reliability is essential. It offers a clean alternative to nuclear power without the issue of intermittency.
The demand for electricity in the United States is climbing fast. The Energy Information Administration recently predicted that power consumption will rise through this year and the next. The main driver is the rapid construction of data centers for artificial intelligence and cryptocurrency. As Big Tech expands its AI capabilities, finding steady, carbon-free power has become a top priority.
Google views this agreement as a model for the future. Briana Kobor, Google’s Head of Energy Market Innovation, praised the deal. She noted that adding this “clean-firm” capacity helps the company cover the costs of its electric service while staying green. This partnership proves that utilities and tech giants can work together to build the infrastructure needed to power the next generation of the internet.
