Bill Gates-backed Fervo Raises $1.89 Billion IPO as Geothermal Demand Rises

Fervo Energy raised $1.89 billion in an upsized Nasdaq IPO, selling 70 million shares at $27 each.
The listing gives the geothermal developer a valuation of about $7.66 billion, as power buyers seek clean, reliable baseload supply.
Fervo’s 500 MW Cape Station project in Utah is fully contracted and expected to begin delivering power later this year.

Fervo Energy entered the public markets this week with a $1.89 billion initial public offering, placing next-generation geothermal power in front of investors at a time of rising energy demand, tighter grid capacity, and growing corporate appetite for around-the-clock clean electricity.

The Houston-based developer sold 70 million shares at $27 each, above its earlier expected range. The company had previously planned to issue about 55.6 million shares at $21 to $24 per share. The upsized offering valued Fervo at roughly $7.66 billion and positioned the company among the largest clean energy listings of the year.

Fervo began trading on the Nasdaq under the ticker FRVO. Chief Executive Officer Tim Latimer rang the exchange’s opening bell on Wednesday alongside co-founder and Chief Technology Officer Jack Norbeck.

“We have proven that geothermal deserves a spot among the major energy players, and Fervo is leading that charge,” Latimer said. “It is crystal clear now that energy is the cornerstone upon which [artificial intelligence], competitiveness, national security, economic development and affordability will all be hinged upon, and it’s our belief that geothermal energy will play a central role in that activity.”

Geothermal Moves Into The Power Demand Debate

Fervo’s IPO lands as electricity demand rises across the United States. Data centers, artificial intelligence workloads, electrified transport, industrial growth, and housing demand are placing new pressure on power systems.

That shift has sharpened interest in firm, carbon-free electricity. Solar and wind remain central to the clean energy buildout, but large energy buyers are also looking for resources that can run continuously. Geothermal and nuclear power are gaining renewed attention because they can provide clean baseload supply.

Nasdaq Senior Vice President of Listings Rachel Racz framed Fervo’s listing against that wider market shift.

“Fervo is joining the market at a pivotal moment for the energy sector,” Racz said. “Demand for clean, reliable, always-on power has never been greater, and Fervo is addressing that challenge head on by scaling enhanced geothermal systems in a way the industry has not seen before.”

Oil And Gas Drilling Meets Clean Power

Founded in 2017, Fervo uses enhanced geothermal systems technology to expand where geothermal power can be developed. Traditional geothermal projects depend on rare geological conditions, such as naturally occurring heat, water, and permeability.

Fervo’s model uses horizontal drilling and advanced subsurface tools to reach geothermal reservoirs more efficiently. The approach draws from oil and gas drilling techniques and allows the company to access multiple wells from a single drilling location. That can reduce surface footprint and lower drilling risk.

Latimer said the company was created around a direct question: whether drilling advances from the oil and gas sector could “similarly revolutionize the geothermal industry.” He said Fervo’s public listing showed the answer was yes.

The company also uses subsurface monitoring tools, including fiber optic sensing supported by artificial intelligence. For investors, that technology base matters because scalability has long been the main barrier for geothermal energy.

Cape Station Becomes The Test Case

Fervo’s flagship project is Cape Station, a 500 MW geothermal development in Beaver County, Utah. The project is expected to begin delivering its first power to the grid later this year. It is due to deliver up to 100 MW by early 2027 and reach full operations by 2028.

The project’s power has already been fully contracted, giving Fervo a clearer route to revenue as it enters public markets. That contracted position is important for investors weighing execution risk in first-of-a-kind energy infrastructure.

In March, Fervo secured $421 million in non-recourse debt financing for Cape Station. Its chief financial officer said at the time that this type of funding had “historically been considered out of reach for first-of-a-kind projects” like Cape Station. HSBC, Barclays, JPMorgan, and Royal Bank of Canada participated in the financing.

Deep Capital Follows Geothermal Growth

JPMorgan, BofA Securities, RBC Capital Markets, and Barclays were joint lead book-running managers for the IPO. Other financial institutions, including Societe Generale and BBVA, also supported the offering. Underwriters received a 30-day option to buy up to 10.5 million additional shares.

Fervo has already attracted major private backers. Previous funders include Google, Bill Gates’ Breakthrough Energy Ventures, B Capital, the California State Teachers’ Retirement System, and Liberty Mutual Investments.

The company raised $244 million in February 2024, $255 million in December 2024, $206 million in June 2025, and $462 million in December 2025. That funding trail shows how geothermal has moved from a niche clean power segment into a more strategic energy investment category.

The policy backdrop also matters. Geothermal has drawn support because it aligns with U.S. energy security, domestic infrastructure, and clean power goals. It also faces less political resistance than some renewable sectors, even as federal climate policy remains divided.

For executives and investors, Fervo’s IPO points to a larger shift in the energy transition. Clean power demand is no longer only about emissions targets. It is now tied to artificial intelligence, industrial competitiveness, grid reliability, and national energy strategy.

If Fervo can scale Cape Station on schedule, geothermal could gain a stronger place in corporate power procurement and infrastructure portfolios. The public market test now begins.