Fervo Energy raised $462 million to accelerate construction of its first large-scale geothermal technology plant in Utah and launch new U.S. projects as rising power demand drives investment in advanced clean energy.
Funding Round Accelerates Cape Station Timeline
Fervo Energy said Wednesday the latest round supports work on Cape Station, a planned 500-megawatt facility in Utah, and initiates development of several additional plants across the Western United States. Sara Juett, Fervo’s senior vice president of strategy, said the site is on track to be “mechanically complete” this year, with first-phase power expected in 2026.
“This is very real and tangible,” Juett said, noting the funding will help the company address surging electricity needs from major data-center operators.
The round was led by B Capital with participation from more than two dozen investors, including AllianceBernstein, Breakthrough Energy Ventures, Google, CalSTRS, CPP Investments and Devon Energy. The financing comes six months after Fervo secured a $206 million package for Cape Station and follows nearly $500 million raised last year.
Fervo, which has an existing clean-energy supply agreement with Google, is among the most heavily backed startups in the enhanced geothermal sector.
Market Demand Boosts Geothermal Expansion
Enhanced geothermal technology has drawn increasing attention as companies seek stable and cost-efficient power to support artificial-intelligence data centers. Juett said the method, which applies drilling techniques often used in oil and gas operations, allows developers to reach hotter rock formations that produce higher energy output.
Rhodium Group estimates enhanced geothermal systems could supply up to two-thirds of new U.S. data-center demand by 2030 at cost levels similar to current operator expenses.
Industry analysts say the political environment also favors geothermal development, with state and federal programs supporting diversified clean-energy sources. Many Fervo employees previously worked in oil and gas and now use that experience to shorten drilling timelines.
Last year the company reported completing a well in 16 days, compared with roughly one month in earlier years. “The current drilling time is now roughly 15 to 17 days,” Juett said.
Geothermal Technology Advances Despite Regulatory Hurdles
Fervo is focusing on the Western United States, where hard rock is closer to the surface. At Cape Station, the company drills about 8,500 feet to reach temperatures near 450 degrees Fahrenheit. Most expansion will remain domestic for now, though Juett said overseas projects remain possible depending on regulatory requirements.
While the global outlook for geothermal remains strong, analysts note that complex regulations and technical challenges continue to slow adoption. Media speculation about a potential Fervo initial public offering has grown in recent months, but company officials have not confirmed any plans, citing strong demand for its technology and long-term project pipeline.
Fervo positions itself as a leader in deep-drilling geothermal technology systems, aiming to produce reliable, around-the-clock renewable energy as utilities and tech companies seek more stable alternatives to solar and wind.
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