Geothermal PPAs gain ground with data center demand
Google Data Center, Iowa, U.S. (source: flickr/ Chad Davis, CC BY 2.0)
Alexander Richter
15 Apr 2025
Geothermal PPAs are rising fast as data centers and corporations seek 24/7 clean power. Discover how this shift drives new geothermal energy growth globally.
Is the geothermal energy sector entering a new phase of growth? Driven by a surge in electricity demand and the need for reliable, round-the-clock renewable power there are indications that indeed this is the case. While solar and wind have long led the way in green energy procurement, a rising wave of geothermal power purchase agreements (PPAs) is positioning geothermal as a critical player in the global energy transition.
Why geothermal PPAs are growing
For years, corporate and utility PPAs favored solar and wind due to falling costs and rapid deployment. But now, geothermal’s unique value—24/7 stable, clean electricity—is capturing attention. It’s particularly well-suited for organizations that can’t afford power interruptions, such as data centers.
In the United States alone, more than a dozen new geothermal PPAs have been signed since 2019. Tech leaders like Google and Meta are leading this trend, signing large-scale deals to ensure constant clean energy for their operations.
Data Centers: a major driver of demand
Data centers are expanding rapidly, fueled by AI, cloud computing, and digital infrastructure. By 2030, they could consume 9% of all U.S. electricity. Unlike intermittent renewables, geothermal can meet these high, always-on energy needs, as also recently pointed to in a research report by Rhodium Group by
- Just in, Fervo Energy signing 31 MW PPA with Shell Energy (with now a fully contracted 500 MW of Fervo’s Cape Station in Utah).
- Google signed a 3 MW PPA with Google in Taiwan (including an equity deal).
- Google signed a 115 MW PPA with Fervo Energy in Nevada, delivering geothermal power via NV Energy by 2026.
- Meta is partnering with Sage Geosystems for up to 150 MW of geothermal power by 2027.
- Analysts suggest geothermal could serve 64% of new data center power demand through 2030 in the U.S.
Global Growth in Geothermal PPAs
Beyond the U.S., geothermal PPAs are gaining momentum globally, supported by local policy and rising corporate commitments to net-zero targets.
U.S.
Just in today, Fervor signed a 31 MW PPA with Shell Energy for its Cape Station geothermal project upping the totally contracted amount to 500 MW of this groundbreaking large-EGS project.
Taiwan
As we reported today, Google signed a 10 MW PPA with Baseload Capital and made an equity investment to help unlock up to 60 GW of geothermal potential.
Japan
Panasonic is sourcing 50 GWh per year from Kyuden Mirai Energy, cutting 22,000 tons of CO? annually and supporting factory operations.
Philippines
AP Renewables and BATELEC II agreed on a 3 MW geothermal PPA, with a further 20 MW emergency capacity, meeting rural electricity demand. While not a data center contract, it clearly shows a similar direction.
Policy support remains key
Policy incentives continue to shape the geothermal PPA landscape, creating more attractive conditions for investment and development.
Country Policy Tool Impact
- U.S. Renewable Portfolio Standards Boosts geothermal PPAs, e.g., California’s 60% goal
- Turkey YEKDEM Feed-in Tariff drove capacity from 100 MW (2010) to over 1 GW
- Philippines Geothermal Service Contracts Supports consistent PPA growth for local utilities
Why geothermal is gaining value
Geothermal energy is standing out in today’s energy mix because it uniquely meets the need for baseload, emissions-free power—something solar and wind can’t deliver alone.
Key advantages of geothermal in PPAs sound like the usual rant on why geothermal is a great choice with things like corporate sustainability alignment, reducing CO? at scale and policy compatibility with RPS, FITs, and green tariffs, practical implications for data centers are likely more driving, such as 24/7 power for high-demand users like data centers, and grid stability, complementing variable renewables.
What’s next for geothermal energy?
The convergence of data center growth, corporate clean energy goals, and supportive policy frameworks is fueling a shift. Geothermal PPAs are no longer niche – they are strategic.
With major untapped potential in markets like Taiwan, Japan, East Africa, and Latin America, and with innovations like enhanced geothermal systems (EGS) on the horizon, geothermal energy is poised to scale.
Conclusion: the geothermal opportunity
Geothermal PPAs are emerging as a key tool to deliver the stable, clean power the world needs. From big tech to rural utilities, organizations are recognizing geothermal’s unmatched reliability and value.
As the world moves toward net-zero, geothermal is not just part of the transition – it’s powering it.
