Geothermal Startup Fervo Energy Secures $462 Million to Power Data Center Boom

Fervo Energy has raised $462 million in new funding. The enhanced geothermal startup announced the massive round on April 10, 2025. The capital will accelerate its first large-scale power plant in Utah.

This funding is a major vote of confidence. It highlights the race to meet surging electricity demand from data centers. According to TechCrunch, the company is on track to complete its flagship project this year.

Massive Funding Round Backed by Major Investors

The investment was led by B Capital. A wide syndicate of top-tier firms joined the round. Key participants include Devon Energy, Google, and Mitsubishi Heavy Industries.

Google is also a key customer. The tech giant has an existing deal to buy power from Fervo for its data centers. This corporate partnership validates the technology’s commercial potential.

This new round follows significant prior funding. Just six months ago, Fervo secured $206 million for its Utah plant. Last year, it raised nearly half a billion dollars in equity and debt.

Geothermal’s Moment to Shine in Energy-Hungry Market

The timing for this technology is perfect. Demand for clean, always-on power is skyrocketing. Data centers from companies like Google and Meta are driving this need.

A recent Rhodium Group analysis is promising. It found enhanced geothermal could supply most new data center power by 2030. It could do so at competitive prices.

The political landscape is also favorable. The current U.S. administration supports the technology. Energy Secretary Chris Wright’s former firm even invested in Fervo in 2022.

Drilling Innovation Cuts Costs and Time

Fervo’s edge comes from oil and gas techniques. It uses directional drilling and fracking to reach super-hot rock. Many of its employees come from the fossil fuel industry.

This expertise has drastically improved drilling speed. Early wells took about a month to complete. The company now averages just 16 days per well.

Faster drilling slashes costs and accelerates project timelines. This is critical for scaling up quickly. The focus remains on the Western U.S. where hot rock is more accessible.

With this new capital, Fervo Energy is positioned to be a leader in providing reliable, carbon-free geothermal energy to a grid that desperately needs it.

Info at your fingertips

What is enhanced geothermal energy?

It is an advanced form of geothermal power. Companies drill very deep to access hotter subsurface rock. They use techniques from the oil and gas industry to create efficient underground heat loops.

Where is Fervo building its first major plant?

The first large-scale project is called Cape Station. It is located in Utah. The goal is to have it mechanically complete in 2025.

Why is there so much demand for geothermal now?

Explosive growth in data centers is the primary driver. These facilities need huge amounts of constant, clean power. Geothermal provides a reliable, zero-carbon baseload solution that solar and wind cannot match alone.

How does Fervo’s technology work?

They drill deep wells, often over 8,000 feet down. They then create a closed-loop system between two wells. Water is pumped down, heated by the hot rock, and returned to the surface to drive turbines and generate electricity.

Will Fervo expand outside the United States?

The company plans to first master operations in the Western U.S. International expansion is a future goal. Different countries present new regulatory challenges the company will need to navigate.