Feb 17 (Reuters) - Renewable energy company Ormat Technologies said on Tuesday that it has entered into a long-term geothermal power purchase agreement with NV Energy to support Google's operations in Nevada.
The agreement for 150 megawatts of new geothermal capacity would allow Ormat to develop a series of new geothermal projects across Nevada, which will come onlinebetween 2028 and 2030.
WHY IT'S IMPORTANT
Geothermal is gaining ground as a swift, carbon-free alternative to nuclear. Because it avoids the intermittency issues of wind and solar, the sector is seeing a massive resurgence, driven largely by Big Tech’s need to fuel power-hungry AI data centers.
Ormat said the agreement provides a scalable way for utilities and major users such as Google to invest in clean, reliable power while covering all service costs.
CONTEXT
U.S. power consumption is expected to rise through this year and the next, the Energy Information Administration said in its Short-Term Energy Outlook last month, driven by a rapid build-out of data centers for AI and cryptocurrency, alongside a shift by homes and businesses toward electric heating and transport.
Geothermal power producers have found new customers in Big Tech as the Silicon Valley companies scour for the vast amounts of electricity needed for their AI expansion plans.
MARKET REACTION
Shares of Ormat surged over 4.7% to $1243.54.
KEY QUOTES
"By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service," said Briana Kobor, Head of Energy Market Innovation, Google.
(Reporting by Varun Sahay in Bengaluru; Editing by Tasim Zahid)
