Google teams up with Nevada utility to use geothermal energy for data centers

Google Partners with NV Energy for Geothermal Power in Nevada

Google has entered into a significant agreement with NV Energy to power its Nevada data centers using advanced geothermal electricity. This deal, pending approval by state utility regulators, aims to boost the carbon-free geothermal electricity supplied to the local grid for Google's operations from 3.5 megawatts to 115 megawatts over the next six years. This partnership marks a noteworthy step for Google as the company progresses towards its ambition of operating entirely on clean energy by 2030.

The accord comes at a crucial time when leading technology corporations are aggressively seeking substantial amounts of electricity to support their expanding data centers. These data centers are pivotal for technologies such as generative artificial intelligence and cloud computing. Google has been particularly active, announcing plans to invest at least $4 billion this year to build or upgrade data centers in Indiana, Missouri, and Virginia. According to Google's latest environmental report, 64% of its global operations are already powered by carbon-free sources like wind and solar energy.

In regulated power markets, where purchasing power directly from a generator is restricted, companies face challenges in securing all-clean energy. Google's collaboration with NV Energy introduces an innovative approach that enables companies with significant electricity demands and climate objectives to obtain clean power. The Clean Transition Tariff, a rate structure developed with Google's direct involvement, aims to be a model that could be replicated across the United States.

This partnership isn't unique to NV Energy. Duke Energy, another utility in regulated states, recently made similar agreements with Google, Microsoft, and Amazon. To bring about this deal, NV Energy has signed a power purchase agreement with advanced geothermal developer Fervo Energy, which has been supplying Google with 3.5 megawatts of power since entering a pilot program with the tech giant in 2021.

The Rise of Geothermal Energy

Geothermal energy, which generates electricity using the Earth's natural underground heat, is gaining traction as companies search for reliable and clean energy sources. Unlike solar and wind energies, which depend on sunlight and wind availability, geothermal offers a constant supply of renewable energy. This characteristic makes it particularly appealing for firms aiming to maintain firm, clean energy capacity.

Nevada stands out as a leading state in harnessing geothermal energy, contributing about 10% of its total electricity generation—a higher proportion than any other state in the U.S., as reported by the Energy Information Administration.