Ormat Technologies pivots to AI-driven geothermal power via EGS

Ormat Technologies, the world’s largest geothermal operator, is pivoting toward Enhanced Geothermal Systems (EGS) to meet the rising electricity demands of AI data centers. Unlike traditional geothermal methods that rely on existing natural steam reservoirs, EGS utilizes oil-drilling and hydraulic fracturing techniques to tap heat from deeper rock formations, potentially allowing plants to be built in more diverse locations.

The company has already secured several agreements to support the growing needs of hyperscalers. In early 2026, Ormat signed a Power Purchase Agreement with NV Energy to provide up to 150 MW of capacity for Google’s data centers in Nevada, expected to come online between 2028 and 2030. Additionally, a 20-year agreement was signed with data center operator Switch for approximately 13 MW from the Salt Wells plant in Nevada.

To advance EGS technology, Ormat is conducting pilot projects with oilfield services firm SLB at the Desert Peak site and with geothermal startup Sage Geosystems. The company is also expanding its footprint in the Western United States, having secured over 10,000 acres in New Mexico for future development. To support these efforts, Ormat recently unveiled the Ormega100, a modular 100 MW binary unit designed for both conventional and EGS applications.