A Hotter Prospect for Steady Power

A 150MW geothermal deal in Nevada reflects rising demand for round-the-clock clean electricity from data centres

23 Feb 2026

In the Nevada desert, where solar panels already shimmer in abundance, a different form of clean power is edging back into view. Ormat Technologies has signed a long-term power-purchase agreement with NV Energy to supply up to 150 megawatts of geothermal electricity, largely to serve Google’s expanding data-centre operations. The deal awaits approval from the Public Utilities Commission of Nevada, with a decision expected in the second half of 2026.

If cleared, the contract would underpin several new geothermal plants scheduled to come online between 2028 and 2030. None has yet been built. Yet the scale and structure of the agreement suggest renewed confidence in geothermal energy as a rare commodity in modern grids: firm, carbon-free power that runs day and night.

That quality matters. Data centres, especially those powering artificial-intelligence systems and cloud services, consume vast amounts of electricity without pause. Solar and wind are cheap and popular, but their output depends on weather and daylight. Geothermal plants, by contrast, draw heat from beneath the earth’s surface and can operate continuously. For energy-hungry facilities that cannot afford interruption, reliability is as valuable as cleanliness.

The economics are delicate. Geothermal projects require heavy upfront investment in drilling and exploration, with no guarantee that underground resources will perform as expected. By locking in a long-term buyer through a regulated utility, Ormat reduces revenue uncertainty and improves its chances of securing financing. For NV Energy, the arrangement fits within its Clean Transition Tariff, which allows large corporate customers to procure new clean resources while preserving regulatory oversight and cost recovery.

The deal also reflects a broader shift. As digital infrastructure expands, companies are seeking not only to offset emissions but to secure dependable supplies of low-carbon electricity. “Firm” renewables, once a niche concern, are becoming strategically important.

Obstacles remain. Permitting can be slow, transmission links must be secured, and subsurface risks cannot be eliminated. Even so, utility-backed agreements of this kind offer a clearer path forward than merchant development alone. Should regulators approve the plan, Nevada’s geothermal expansion may signal that in the race to power the digital economy, constancy is gaining favour over intermittency.