Google partners with Nevada utility for geothermal power for data centers

NEW YORK (Reuters) – Google has signed a deal with electric utility Berkshire Hathaway NV Energy to power its Nevada data centers with advanced geothermal electricity, the U.S. technology company said on Wednesday.

The deal, which has been sent to state utility regulators for approval, would increase the amount of carbon-free geothermal electricity injected into the local power grid for Google’s operations from 3.5 megawatts to 115 megawatts over about six years, said the Google in a statement.

The deal comes as the world’s biggest technology companies seek enormous amounts of electricity to power their rapidly expanding data centers, or giant computer warehouses, needed to support technologies such as generative artificial intelligence and cloud computing.

The partnership advances Google toward its goal of running on completely clean energy by 2030.

So far this year, Google has announced plans to spend at least $4 billion to build or expand data centers in Indiana, Missouri and Virginia.

Google’s global operations were powered by 64% carbon-free energy, including wind and solar, according to the company’s latest environmental report.

The partnership with NV Energy is a new way for companies with large emerging electricity loads and climate objectives to source power in regulated energy markets.

Regulated energy markets require energy to be purchased from a local utility rather than directly from a power generator, which can be a challenge for companies looking for completely clean energy.

The deal involved Google’s direct input into planning NV Energy’s power generation resources and developing a tariff structure, dubbed the Clean Transition Tariff, which Google wants to see replicated in other parts of the country.

Duke Energy, which operates in regulated states, announced a similar deal with Google, as well as Microsoft and Amazon, late last month.

To facilitate the deal, NV Energy entered into a power purchase agreement with advanced geothermal developer Fervo Energy, which currently supplies Google with 3.5 megawatts of power after entering a pilot program with the technology company in 2021.

Solar and wind energy sources depend on the availability of sunlight and wind, which has led companies looking for firm clean capacity to consider existing or less widely used nuclear technologies such as geothermal.

Geothermal energy, which uses natural underground heat to produce renewable electricity, accounts for about 10% of total electricity generation in Nevada, or the most of any U.S. state, according to the Energy Information Administration.

(Reporting by Laila Kearney; editing by Liz Hampton and Rashmi Aich)