Big tech data companies look to geothermal energy in Nevada and other states

BY EPN Staff

Nevada Energy has signed a long-term geothermal power purchase agreement with renewable energy company Ormat Technologies to support Google data centers. 

Ormat, a global leader in geothermal technology, will build several new geothermal projects in the state, which will come online in 2028 through 2030. The company currently runs three geothermal plants in the state.  

“AI 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,” Doron Blachar, Chief Executive Officer of Ormat Technologies, told ESG Today. 

The partners forged the agreement through Nevada’s unique Clean Transition Tariff (CTT), a regulatory rate mechanism that enables high energy-using enterprises to pay a premium for reliable, carbon-free power. 

“By 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,” said Briana Kobor, head of Energy Market Innovation at Google. 

Why it matters

U.S. power consumption is expected to rise in 2026 and 2027 due to data centers and increasing electrification of heating and transportation. Big tech is looking for new sources of power, including nuclear, geothermal, natural gas and renewables to provide electricity for their energy-hungry data centers. 

In his State of the Union address, President Donald Trump urged big tech companies to supply their own power. “This is a unique strategy that's never been used in this country before," Trump said. "We have an old grid. It can never handle the amount of electricity that's needed, so I'm telling them they should build their own plants and produce their own electricity.”

Although geothermal currently generates less than 1% of power consumed in the United States, according to the U.S. Geological Survey, interest in this carbon-free alternative is growing. In its latest survey, the U.S. Geological Survey found western states have the potential to produce one-tenth of the nation’s power supply. 

The bigger picture

Currently, most of Nevada’s 26 geothermal plants are in the northern part of the state. Second only to California in output, the plants can generate up to 827 megawatts per hour, providing power to half a million homes, according to state government sources. 

In the past, geothermal plants relied on existing underground reservoirs of steam to move turbines, but next-generation geothermal technology, called enhanced geothermal systems (EGS), harnesses the power of hydraulic fracturing to drill into hot rocks below the surface. Water is injected to create an artificial reservoir. 

The U.S. Department of Energy is currently funding two large-scale EGS demonstration projects to guide the future of this promising energy technology. Fervo Energy’s Cape Generating Station in Utah and Rodatherm Energy Corp in California will be online in the next two years.