Geothermal revolution in the US: Startup Fervo Energy raises $206 million for the largest power plant of its kind

As the world faces a growing demand for stable, clean energy – especially for energy-hungry data centers – American startup Fervo Energy is coming up with an ambitious project that could change the rules of the game. The company announced that it has raised $206 million to build a massive geothermal power plant in Utah. When completed, it is expected to be the largest power plant using so-called enhanced geothermal technology in the world.

The first phase of the project, called Cape Station, is expected to start delivering power next year, with a capacity of 100 megawatts. An expansion of another 400 megawatts is planned for 2028 – enough to power hundreds of thousands of homes or run large data centers.

Deeper, hotter, more effective

Unlike traditional geothermal sources that rely on naturally hot geological structures, enhanced geothermal technology makes it possible to harness heat deep within the Earth's crust even where there is no natural geothermal reservoir. This is achieved through advanced drilling and water injection into hot rock layers. The result is a stable source of energy available 24 hours a day - without carbon emissions.

Fervo also recently achieved a significant technological milestone: they successfully drilled their deepest and hottest well – to a depth of 4,800 meters in 16 days. The temperature at the deepest point should reach up to 270 °C. The speed and efficiency of drilling are key to reducing costs and expanding this technology in practice.

Investors believe: energy for a world driven by artificial intelligence

Key investors include Breakthrough Energy Catalyst, Bill Gates’ investment platform focused on breakthrough energy solutions. It contributed $100 million in preferred equity. Mercuria, which had previously provided Fervu with a $120 million loan, provided another $60 million. Bridge financing of $45.6 million was provided by X-Caliber Rural Capital.

This strong capital inflow only confirms that in the eyes of investors, this is a technology with enormous potential - and at the same time a solution to an increasingly large problem: how to ensure a reliable and environmentally friendly source of energy for data centers and artificial intelligence infrastructure.

Connecting with the oil industry: turning experience into innovation

Interestingly, enhanced geothermal technology leverages many of the skills and technologies originally developed for the oil and gas industry, which opens doors for Fervu among more conservative players in the U.S. energy sector and creates a politically advantageous position – even in an administration that is focused on traditional resources.

The future beneath our feet

Geothermal energy is not just an alternative – thanks to technological advances, it is increasingly appearing as a realistic basis for a new energy era. Thanks to companies like Fervo Energy, the heat hidden deep beneath our feet could become the key to a sustainable, uninterrupted and clean energy future.

Geothermal energy as a strategic advantage for the US

The United States has vast geothermal potential, but it has been underexploited, particularly in California and Nevada. Technologies like Fervo's open up the possibility of expanding geothermal resources to many other states. At a time when the West is seeking to diversify its energy sources and reduce its dependence on fossil fuels and uncertain gas suppliers, geothermal energy represents a strategic tool for ensuring energy sovereignty.

AI and data centers as a new demand driver

The rapid growth of artificial intelligence, machine learning and cloud technologies is creating an unprecedented demand for electricity. However, traditional sources often fail to provide the necessary stability and sustainability. Geothermal energy, which is available continuously and independently of the weather, is becoming an ideal solution for powering next-generation data centers. This makes it an attractive choice not only from an environmental perspective, but also from a business perspective.

From prototype to industry standard

Although projects like Cape Station are still relatively young, they signal the emergence of a new industry standard. Advances in drilling, sensing, and energy management are making geothermal energy a truly scalable model. Startups like Fervo are showing that the combination of engineering know-how and capital investment can bring about fundamental change even in an industry long considered “uninnovative.”

Slovakia? Maybe someday too

Although Slovakia does not have the conditions to develop deep geothermal energy on the scale of the USA, interest in this technology is growing here. Pilot projects in the Košice Basin or in eastern Slovakia show that geothermal energy may have a place in Central Europe in the future – perhaps not in the form of huge power plants, but as a stable and ecological source of heat for cities or industrial parks.