Under a power purchase agreement (PPA) between Ormat and NV Energy, the partners plan to leverage the Clean Transition Tariff (CTT) to invest in clean, reliable electricity for Google’s operations in Nevada. This initiative is pending approval by the Public Utilities Commission of Nevada, scheduled for review in the latter part of 2026.
Ormat intends to develop a series of geothermal projects across Nevada if the partnership receives approval. The first project is slated to commence commercial operations as early as 2028, with additional ventures expected to follow through 2030.
âAI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free power required to support that growth,â expressed Doron Blachar, CEO of Ormat Technologies.
Briana Kobor, head of energy market innovation at Google, noted, âBy adding up to 150 MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service, ensuring the CTT insulates other ratepayers while strengthening the reliability of the local power system.â
Geothermal Interest Heats Up
Geothermal energy harnesses heat from beneath the Earthâs surface to generate electricity or provide heating and cooling. In the context of data centers, geothermal power can sustain servers, HVAC systems, and other critical equipment.
Amid concerns about power availability in digital infrastructure, geothermal energy is garnering renewed attention as a sustainable resource. The US government has unveiled plans to streamline the permitting process for geothermal energy development to bolster AI infrastructure.
In August 2024, Meta forged an agreement with Sage Geosystems to incorporate geothermal energy into its data center operations. Similarly, Star Energy Geothermal in Indonesia is exploring options to supply clean power to data centers located near its geothermal facilities.
In a recent opinion piece for DCN, Javad Asgari of Simpson Thacher and James Blake of Ferbo Energy underscored the transformative potential of enhanced geothermal systems (EGS), highlighting the capability of EGS to engineer underground heat reservoirs rather than solely relying on naturally occurring ones. This innovation could significantly expand the scale of geothermal energy, with long-term capacity potential reaching hundreds of gigawatts.
