Fervo Energy Upsizes IPO to $1.82B as Geothermal Gains Traction

Bill Gates-backed geothermal energy developer Fervo Energy has increased the size of its proposed initial public offering, seeking to raise as much as $1.82 billion as investors pour capital into energy infrastructure tied to the AI and data center boom.

The Houston-based company said it plans to offer 70 million shares of Class A common stock priced between $25 and $26 per share. The upsized deal follows an earlier proposal that targeted a valuation of roughly $6.5 billion through the sale of 55.6 million shares priced between $21 and $24 each.

Fervo is positioning itself as a scalable geothermal power provider capable of supplying round-the-clock renewable electricity to utilities and hyperscale data centers. The company said its AI-enabled precision directional drilling technology allows it to drill horizontally into geothermal reservoirs and operate multiple wells from a single location, “dramatically lowering our surface footprint and reducing drilling risks.”

The company has benefited from rising demand for reliable power as AI workloads and data center expansion strain existing grid infrastructure. Fervo disclosed roughly $7.2 billion in potential revenue backlog from power purchase agreements, with 500 megawatts currently under construction and 658 megawatts of contracted offtake.

Its partners include Southern California Edison and Shell, while investors include Breakthrough Energy Ventures, Devon Energy and Alphabet. Alphabet participated in a $462 million investment round in December and plans to power its Nevada data centers using Fervo supply.

Fervo’s Cape Station project in Utah is expected to generate 500 megawatts of power, potentially making it one of the world’s largest geothermal developments. The company also disclosed 2.6 gigawatts in advanced development and more than 38 gigawatts in early-stage development.