Today’s Change
Current Price
Fervo Energy (FRVO +28.41%), an enhanced geothermal power developer and independent power producer, closed at $19.75, up 28.41%. Pre-market, the company said it signed a 396-megawatt power purchase agreement with Alphabet’s (GOOG -1.01%) (GOOGL -1.28%) Google, and investors are watching next quarter’s earnings and project milestones. Trading volume reached 35.0M shares, coming in about 851% above its three-month average of 3.7M shares. Fervo Energy IPO’d in 2026 and has fallen 46% since going public.
How the markets moved today
S&P 500 (^GSPC -0.71%) closed at 7,633, down 0.70%, while the Nasdaq Composite (^IXIC -1.03%) finished at 26,100, down 1.03%. Among utility-scale geothermal power generation and geothermal technology peers, Ormat Technologies (ORA +5.19%) closed at $107.33, up 5.23%, and NextEra Energy (NEE +0.72%) closed at $82.91, up 0.69%, highlighting stronger interest in clean-power names tied to data-center demand.
What this means for investors
Fervo Energy shares soared 28% after announcing a major 396-MW purchase agreement with Google, providing visibility into potential revenue for years to come from a top-tier customer. Google will also have the option to expand the deal by 600 MW, bringing it to nearly 1 GW in 2030.
Overall, the deal seems like a natural pairing. Fervo can begin selling power to Google in 2028 from its Cape Station project in Utah, while the company tries to build an artificial intelligence data center in the state. Though Google still has to jump through all the regulatory hurdles to build a data center there, Fervo’s 24/7 carbon-free, thermal energy would be an ideal solution for the tech behemoth.
That said, Fervo’s projects are still in progress, and Google’s rapid data center build-out could decelerate due to any type of AI slowdown, so investors need to note that volatility is unavoidable in this virtually pre-revenue stock, especially as it will be under pressure to supply the amount of power needed in just a few years.
