Fervo Energy (NASDAQ:FRVO) soared by 28.41 percent on Tuesday to close at $19.75 apiece after bagging home a new power purchase agreement (PPA) with Google to support the development of its data center facility in Utah.
Under the agreement, the energy company will deliver 396 megawatts of power to Google from its Cape Station project to serve as a foundational building block for the technology giant’s future data center.
The first phase of the project has already advanced toward commercial operations, while the second phase is currently underway. Eight GeoBlocks are slated to come online in 2028.
Photo from Fervo Energy
Additionally, Google will have the option to expand its offtake by another 600 MW, which would bring its overall contracted capacity to around 1 GW by 2030.
Final data center plan remains subject to a variety of factors, including engineering feasibility, state and local approvals, and commercial conditions.
Expanded Partnership
The agreement followed Fervo and Google’s earlier development of Project Red in Nevada in 2023, which successfully delivered power to the local grid, including Google’s data centers.
The firms then signed an official PPA involving 115 MW of geothermal capacity, which they said also helped insulate customers from the project’s costs.
Revenues Climb
Deals aside, Fervo Energy (NASDAQ:FRVO) said last month that it raked in $113 million in revenues for the second quarter of the year, versus none in the same period last year, amid continued strong demand from its customers, with behind-the-meter capabilities playing a growing role in meeting said demand outside conventional grid interconnection timelines.
However, net losses increased by 390 percent to $55.9 million from $11.4 million, dragged by higher operating losses and non-operating expenses.
Hedge Funds Buy In
Fervo Energy (NASDAQ:FRVO), a newly listed company that debuted on the stock market only last May, has seen a strong reception from institutional investors, partly thanks to the growing demand for energy to power the artificial intelligence industry.
Insider Monkey’s data showed that 53 hedge funds held positions in the stock in the second quarter of the year, with their collective holdings totaling $691 million.
Value Aligned Research Advisors ranked first among the largest hedge fund investors, with $36.69 million, followed by Scopus Asset Management with $53.6 million.
Citadel Investment Group came third at $46.76 million.
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