Geothermal energy is emerging as a key player in addressing the power demands of data centers, with major technology firms like Alphabet (NASDAQ: GOOGL), NVIDIA (NASDAQ: NVDA), and Berkshire Hathaway (NYSE: BRK.B) forming multibillion-dollar partnerships to harness this resource. Geothermal projects can be operational much quicker and cheaper than nuclear plants, which can cost over $14 billion and take years to permit, making geothermal a critical solution as the demand for energy accelerates.
Fervo Energy (NASDAQ: FRVO), which recently went public, has secured contracts with Google for its Cape Station project in Utah, with additional plants expected to come online between 2026 and 2027. Analysts anticipate that revenues could begin materializing in late 2026, potentially altering market valuations. Meanwhile, Ormat Technologies (NYSE: ORA) demonstrates a successful model, achieving approximately 50% top-line growth as demand for geothermal power rises.
Investments in geothermal extend beyond operators; Baker Hughes (NASDAQ: BKR) provides essential drilling technology, positioning itself to benefit from the sector’s growth. Despite current market volatility, geothermal energy remains a viable and underappreciated asset as companies scramble to secure reliable, sustainable power sources.
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