Google Taps Geothermal Power for AI Boom in Landmark Nevada Deal

RENO, NV – February 17, 2026 – In a landmark agreement signaling a new phase in powering the digital economy, Ormat Technologies has signed a long-term deal to supply up to 150 megawatts of new geothermal power for Google's sprawling data center operations in Nevada. The power will be delivered through the state's primary utility, NV Energy, leveraging an innovative tariff designed to accelerate corporate investment in clean energy.

The deal, one of the largest of its kind, directly confronts the burgeoning energy challenge posed by the rapid expansion of artificial intelligence. As AI models become more complex and data centers scale to meet demand, their electricity consumption is soaring, creating an urgent need for reliable, carbon-free energy sources that can operate around the clock. This Power Purchase Agreement (PPA) positions geothermal energy as a critical solution to this modern industrial challenge.

Powering the AI Revolution

The timing of the agreement underscores a pivotal moment for the technology sector. The immense computational power required for training and running AI applications is placing unprecedented strain on electrical grids. Unlike intermittent renewable sources like solar and wind, which fluctuate with weather conditions, geothermal taps into the Earth's natural heat to provide a constant, or 'firm', source of power, making it an ideal match for the 24/7 operational needs of data centers.

“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,” said Doron Blachar, CEO of Ormat Technologies, in a statement announcing the deal. The agreement is a significant step in Google's ambitious quest to run its entire global operation on carbon-free energy, every hour of every day, by 2030—a goal that requires moving beyond annual matching to ensure constant clean power delivery.

This partnership highlights a growing trend where tech giants are seeking out firm, dispatchable clean energy. While Google has already achieved 100% annual matching of its electricity use with renewable purchases, the challenge of hourly matching remains. Geothermal projects, located directly within the same grid that serves its Nevada facilities, help close that gap by providing a consistent supply of clean electrons, day and night.

A Blueprint for Corporate Clean Energy

Facilitating this groundbreaking PPA is NV Energy’s Clean Transition Tariff (CTT), a regulatory framework that is gaining recognition as a replicable model for decarbonization across the United States. Approved by the Public Utilities Commission of Nevada (PUCN) in March 2025, the CTT creates a formal pathway for large energy customers like Google to partner with their utility to procure power from new, specific clean energy projects.

Crucially, the tariff is designed to ensure that the participating company covers all costs associated with the new energy supply. This insulates other residential and commercial ratepayers from any financial impact, while allowing corporate capital to directly fund the construction of new renewable infrastructure that benefits the entire grid's stability and cleanliness.

“The momentum of the Clean Transition Tariff through this agreement with NV Energy, Google and Ormat demonstrates a proven, scalable model for large customers to partner with utilities and technology providers to bring new clean capacity to the grid,” noted Briana Kobor, Google's Head of Energy Market Innovation. The CTT has already been utilized for other projects in Nevada, including a geothermal agreement with Fervo Energy and solar-plus-storage projects for other large industrial customers, proving its effectiveness as more than a one-off solution.

This model effectively aligns the ambitious sustainability goals of corporations with the long-term resource planning of utilities, creating a powerful synergy that can accelerate the transition away from fossil fuels without placing the financial burden on the general public.

Ormat's Strategic Geothermal Play

For Ormat Technologies, a vertically integrated geothermal leader with over five decades of experience, this PPA represents a major strategic victory. It provides clear, long-term revenue visibility and validates the company's significant investments in exploration and drilling activities across Nevada's resource-rich landscape. The positive market reaction, with Ormat's stock (NYSE:ORA) rising following the announcement, reflects investor confidence in the company's growth trajectory.

The agreement is structured as a portfolio, allowing Ormat to develop a series of new geothermal power plants that will come online between 2028 and 2030. This phased approach provides development flexibility while building a substantial asset base. The contract's term—extending 15 years beyond the commercial operation date of the final project—guarantees a stable income stream for decades, solidifying Ormat's position as a key energy provider in the American West.

This deal, combined with federal incentives like the extended geothermal tax credit, strengthens Ormat's ability to execute its expansion plans. It not only secures a high-profile customer in Google but also serves as a powerful case study for other corporations and utilities considering geothermal energy to meet their reliability and climate goals.

The development of these new geothermal plants is expected to create local jobs and contribute to Nevada's economy, further cementing the state's role as a leader in the U.S. clean energy transition. Before construction can begin, the PPA is subject to final approval by the Public Utilities Commission of Nevada, with a decision expected in the second half of 2026.