(Updates with Google's response in the sixth paragraph and the most recent stock move in the last paragraph.)
Fervo Energy (FRVO) has signed a 396-megawatt power purchase agreement with Alphabet's (GOOG, GOOGL) Google, the company said on Tuesday.
Under the agreement, Google will purchase energy from Fervo Energy's Cape Station geothermal project to power a potential data center in Utah, according to the company.
Fervo Energy said that the agreement includes an option for Google to expand its offtake by about 600 megawatts, for a total capacity of nearly 1 gigawatt, by June 2030.
Financial details related to the agreement were not disclosed.
The Cape Station geothermal project is slated to come online in 2028, meanwhile, the potential data center remains subject to factors like engineering feasibility, state and local approvals, and commercial conditions, Fervo Energy said.
"Although several components of this project are not yet finalized, we want to build data centers the right way through an open and transparent dialogue," Google said in response to an inquiry by.
Shares of Fervo declined more than 3% in recent Wednesday premarket activity.
Price: $19.10, Change: $-0.65, Percent Change: -3.29%