Always-On Clean Power Puts Geothermal in the Spotlight

Investors and buyers rally behind geothermal as firm, 24/7 clean power. Fervo scales fast, partnerships deepen, and bankable PPAs decide winners

22 Jan 2026

The US geothermal sector is entering a more competitive phase as investors and power buyers turn to technologies that can deliver clean electricity around the clock.

Recent financings and partnerships have helped reposition geothermal from a niche option into a source of firm, always-on power, as electricity demand rises from data centres, electrification and concerns over grid reliability.

A key signal came from Fervo Energy, which has closed a $462mn funding round to accelerate its geothermal developments. The oversubscribed raise reflects investor interest in developers that can replicate projects at scale rather than rely on pilot schemes. Fervo said the capital would be used to advance its Cape Station project and expand its wider pipeline.

The shift also reflects changing priorities among buyers. Utilities and large corporate customers are increasingly focused on predictability and performance, rather than cost alone. For geothermal developers, this places greater weight on execution and on securing bankable power purchase agreements that can support long-term financing.

Partnerships between established energy groups are reinforcing this trend. In October, SLB and Ormat said they would collaborate to speed up geothermal asset development, including enhanced geothermal systems. The agreement highlights growing alignment between energy service providers and operators seeking to bring geothermal projects to infrastructure scale.

Policy signals have added support. US Department of Energy reporting has pointed to rising activity in geothermal markets and scope for further technological advances. The emphasis, developers say, is on reducing development risk and shortening timelines to make projects more attractive to investors.

Exploration is becoming a new area of competition. Zanskar recently raised $115mn to expand its use of artificial intelligence in geothermal prospecting, targeting faster and more accurate identification of viable resources. Investors have shown interest in tools that can lower uncertainty at the earliest stages of development.

Despite the momentum, challenges remain. Geothermal projects require high upfront capital and careful operational management, and competition is increasing as new entrants are drawn to the sector. Still, the direction of travel is clear.

As demand grows for clean power that can run continuously, geothermal is moving closer to the centre of the US energy mix. Developers that can combine strong financing, reliable delivery and long-term customer contracts are likely to shape the next phase of the market.