Geothermal Power to Fuel AI Boom in New Ormat-Switch Nevada Deal

RENO, NV – January 12, 2026 – In a landmark agreement signaling a critical shift in how the digital world powers itself, renewable energy firm Ormat Technologies Inc. has signed a 20-year Power Purchase Agreement (PPA) to supply geothermal energy to data center giant Switch. The deal secures a steady flow of carbon-free electricity for Switch's Nevada operations, directly addressing the monumental energy challenge posed by the artificial intelligence boom.

Under the terms announced today, Ormat will provide approximately 13 megawatts (MW) of baseload geothermal power from its Salt Wells facility near Fallon, Nevada. This marks Ormat’s first direct PPA with a data center operator and underscores a burgeoning trend: the tech industry's search for reliable, 24/7 renewable energy sources to satisfy the voracious appetite of AI and cloud computing.

The AI Energy Crunch

The backdrop for this partnership is an escalating global energy concern. The rapid proliferation of AI technologies is driving an unprecedented surge in electricity demand from the data centers that host them. Projections show that global electricity consumption from data centers could double by 2030, reaching nearly 1,000 terawatt-hours—a figure comparable to the entire annual power consumption of Japan. In the United States alone, data center power usage is forecast to grow by over 130% by the decade's end.

Much of this growth is directly attributable to AI. By 2030, AI-optimized servers are expected to consume nearly 45% of all data center power, a staggering increase from just over 20% in 2025. The computational power required for training advanced models like GPT-4 is immense, with some next-generation AI initiatives projecting a need for multi-gigawatt data centers. This explosive demand is placing immense strain on national power grids, leading to warnings that up to 40% of AI-focused data centers could face power supply constraints by 2027, potentially throttling the very innovation they are meant to support.

This reality has forced data center operators to look beyond intermittent renewables like solar and wind, which, while clean, cannot provide the constant, unwavering power stream necessary for mission-critical digital infrastructure. The need for a stable, carbon-free, baseload power source has become paramount.

Geothermal's Baseload Advantage

Enter geothermal energy. By tapping into the Earth's natural heat, geothermal plants can generate electricity around the clock, regardless of weather conditions. This gives them an exceptionally high capacity factor—often exceeding 90%—making them a uniquely reliable source of renewable power. For a data center operator like Switch, which has powered its campuses with 100% renewable energy since 2016, geothermal offers the perfect blend of sustainability and stability.

“We are proud to enhance our diverse portfolio of renewable, Nevada-based energy sources and deepen our commitment to powering Switch’s data centers with renewable energy through this new long-term agreement with Ormat,” said Alise Porto, SVP of Energy & Sustainability at Switch. “As demand for AI and high-performance digital infrastructure accelerates, securing reliable, carbon-free baseload power is essential to supporting our customers and sustaining our growth. Geothermal energy offers the resiliency and sustainability profile required for the next generation of AI and cloud workloads.”

Beyond its 24/7 availability, geothermal power also offers a minimal land footprint compared to sprawling solar or wind farms, a key advantage for integrated energy and data infrastructure. The new agreement also includes an option for Ormat to add a 7MW solar PV facility to serve the auxiliary power needs of the geothermal plant, creating a hybrid energy solution that further optimizes clean energy use.

A Strategic Partnership in the Silver State

The agreement is a strategic triumph for both Nevada-based companies. For Ormat, a vertically integrated leader in geothermal technology for over five decades, it marks a significant entry into the lucrative and rapidly expanding data center market. The deal not only enhances the economic value of the Salt Wells plant but also sets a precedent for future contracts.

“This agreement not only advances Switch’s sustainability goals but also underscores the growing demand for renewable energy within the data center sector,” commented Doron Blachar, CEO of Ormat Technologies. He noted that the partnership could serve as a framework for recontracting over 100 MW of Ormat's existing fleet, signaling a major strategic pivot towards serving high-demand tech clients.

To fulfill the agreement, Ormat will undertake a major upgrade of the Salt Wells power plant, expected to be completed by the second quarter of 2026. Energy deliveries to Switch are scheduled to commence in the first quarter of 2030, securing a long-term power source for Switch's growth.

For Switch, the deal reinforces its long-standing leadership in sustainability. The company, known for its highly efficient data center designs, achieves an industry-leading Power Usage Effectiveness (PUE) of 1.18. This PPA diversifies its renewable portfolio with a crucial baseload component, ensuring it can continue to meet client demand for green-powered computing while supporting its own validated science-based targets for emission reductions. The partnership exemplifies a powerful synergy, leveraging Nevada’s rich geothermal resources to fuel the global technology sector sustainably.

As the digital world grapples with its environmental footprint, this partnership between a geothermal pioneer and a data center leader provides a tangible blueprint for a more sustainable future. It demonstrates that the immense power demands of artificial intelligence can be met not with fossil fuels, but with clean, constant, and innovative energy solutions drawn from the earth itself.