13 May 2026Business & Strategy
Fervo Energy raises $1.89bn betting AI will pay for clean baseload power
The largest energy IPO ever just validated geothermal as AI infrastructure. Fervo priced at $27 per share, raising $1.89 billion in an oversubscribed offering that values the company at $7.7 billion. The Houston startup applies fracking techniques to hot rock formations, creating enhanced geothermal systems that generate 24/7 clean power exactly when AI data centers need it most. Hyperscalers like Google and Microsoft are desperate for baseload renewables as AI workloads surge, making Fervo's 3GW pipeline suddenly precious. The company's Cape Station project targets $70 per kilowatt initially, dropping to under $30/kW as production scales. With 42GW of additional potential capacity, Fervo is betting AI's insatiable appetite for always-on clean energy justifies premium valuations in a sector notorious for broken promises.
From Memory makers name their price as shortage deepens