Fervo IPO Upsized to $10B on AI Data‑Center Demand
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- Fervo Energy raised $1.89 bn in its IPO, upsizing the offering and closing at $27 per share, which sent the stock up 33% on debut and lifted its valuation above $10 bn.
- Fervo sold an additional 14.6 million shares after two price‑range lifts, netting $500 m more than originally anticipated.
- Cape Station in Utah is slated to start operating this year at 500 MW, with grid interconnection permitting 2 GW and a third‑party engineer estimating up to 4 GW of heat potential.
- Corsac Station in Nevada will supply electricity to Google, which has contracted 115 MW of power.
- Fervo has cut drilling time and cost per foot by two‑thirds after completing 14 wells, using directional drilling techniques borrowed from oil and gas.
- AI data‑center demand is driving high‑premium contracts for baseload geothermal power, with companies seeking “behind‑the‑meter” connections to secure reliable electricity.
Why it matters: The $500 m surplus from the upsized IPO gives Fervo the cash to fast‑track its Cape Station and Corsac projects, positioning the company to supply reliable baseload power to AI data centers and lock in high‑value contracts, while investors capture upside in a fast‑growing clean‑energy niche.
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