Ormat Technologies Secures Landmark 150 MW Geothermal PPA with NV Energy to Power Google's Nevada Data Centers

The press release from Ormat Technologies dated February 17, 2026, announces a major deal: a long-term geothermal Power Purchase Agreement (PPA) with NV Energy to deliver up to 150 MW of new geothermal capacity specifically to support Google's data center operations in Nevada. 

This agreement, facilitated through NV Energy's Clean Transition Tariff (CTT), is pending approval from the Public Utilities Commission of Nevada (PUCN), anticipated in the second half of 2026.

In a significant step forward for renewable energy and the tech industry's sustainability goals, Ormat Technologies Inc. (NYSE: ORA), a leading vertically integrated geothermal and renewable energy company, has signed a portfolio Power Purchase Agreement (PPA) that could deliver up to 150 megawatts (MW) of clean, reliable geothermal power to support Google's data centers in Nevada. Announced on February 17, 2026, this long-term contract marks a pivotal moment in addressing the surging electricity demands driven by artificial intelligence (AI) and data center expansion, while reinforcing geothermal's role as a baseload renewable resource.

Geothermal energy, derived from the Earth's natural heat, offers consistent, 24/7 power generation with near-zero carbon emissions—unlike intermittent sources such as wind or solar. This makes it particularly attractive for energy-intensive operations like data centers, which require uninterrupted, high-reliability electricity to power servers running AI workloads, cloud services, and more. Google's commitment to operating on carbon-free energy aligns perfectly with this deal, as the company seeks scalable solutions to meet its ambitious sustainability targets amid exponential growth in AI-driven demand.

The PPA is structured as a multi-project portfolio, allowing Ormat to develop several new geothermal projects across Nevada. These facilities will come online progressively, with the first expected as early as 2028 and additional ones through 2030. The contract term starts when the initial project achieves commercial operations and extends for 15 years after the last project's commissioning. This flexible, phased approach provides Ormat with clear visibility and long-term revenue stability, enabling efficient planning and investment in exploration, drilling, and construction.

A key enabler of this agreement is NV Energy's Clean Transition Tariff (CTT), a innovative mechanism designed to accelerate the integration of advanced clean energy technologies. The CTT allows large energy users like Google to directly invest in or contract for new clean capacity while ensuring that all associated costs are covered by the user—not shouldered by other ratepayers. This creates a scalable, replicable model that can be applied in other U.S. electricity markets, insulating the broader grid and promoting reliability. As Briana Kobor, Head of Energy Market Innovation at Google, noted: “By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilizing a repeatable framework that fully covers all costs associated with our electric service, ensuring the CTT insulates other ratepayers while strengthening the reliability of the local power system.”

For Ormat, this PPA strengthens its growth trajectory beyond 2028. The company, with over five decades of expertise, is the only vertically integrated player in geothermal, handling everything from design and manufacturing (via its proprietary Ormat Energy Converter technology) to ownership and operation. Ormat's current portfolio includes approximately 1,695 MW of generating capacity, with 1,310 MW from geothermal and solar spread across the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe, plus 385 MW in energy storage in the U.S. Nevada, rich in geothermal resources due to its location in the Great Basin, has long been a stronghold for Ormat, and this deal builds on prior exploration and drilling efforts.

Doron Blachar, CEO of Ormat Technologies, emphasized the strategic importance: “AI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free power required to support that growth. This portfolio PPA provides long-term profitable revenue growth and clear visibility into our portfolio development plans... The combination of this PPA and its favorable terms, together with the extension of the geothermal tax credit provided through the OBBBA framework strengthens our ability to execute our long-term growth strategy and create substantial shareholder value.”

The deal underscores broader trends in the energy sector. Data centers, particularly those supporting AI, are projected to drive massive increases in electricity consumption. Traditional sources like natural gas may fall short in meeting carbon-free mandates, making "clean-firm" options like geothermal increasingly vital. Nevada's supportive regulatory environment and abundant geothermal potential position it as a leader in this transition, potentially attracting more investments.

This partnership between Ormat, NV Energy, and Google exemplifies collaborative models where utilities, tech giants, and renewable developers work together to expand clean energy infrastructure. It protects ratepayers, enhances grid stability, and accelerates decarbonization. As geothermal gains momentum—bolstered by technological advancements and policy incentives like extended tax credits—the industry could see rapid scaling in regions with suitable geology.

For investors, this announcement highlights Ormat's strong positioning in a high-growth niche. The company's stock reacted positively in pre-market trading following the news, reflecting confidence in its pipeline and execution capabilities. With a proven track record of delivering projects worldwide and expanding into storage and solar hybrids, Ormat is well-placed to capitalize on the rising demand for reliable renewables.

In summary, this 150 MW geothermal PPA is more than a contract—it's a blueprint for how large-scale clean energy deployment can meet the needs of the AI era while advancing sustainability. As projects break ground in Nevada starting in the late 2020s, the benefits will extend far beyond Google’s data centers, contributing to a cleaner, more resilient energy future.

Source: Ormat Press Release

This article is based on the official press release from Ormat Technologies and related industry coverage. Forward-looking statements involve risks; refer to Ormat's SEC filings for details.