Google announced in a recent blog post on its official website that it has established a clean energy partnership with NV Energy, a subsidiary of Berkshire Hathaway under Buffett, to meet the growing electricity demand of Google and other energy users. NV Energy is a utility company located in Nevada, United States.
Google stated in its blog that NV Energy is partnering with energy startup Fervo Energy to develop a new geothermal power plant that will provide NV with 115 megawatts of geothermal power supply. NV will then sell its electricity resources to Google. This multi-party agreement still requires formal approval from local regulatory authorities.
Google stated that through its energy supply agreement with NV, the enhanced geothermal power generation capacity supported by Google has increased by nearly 25 times, bringing more clean energy to the local power grid operated by Nevada's data center.
It is understood that geothermal energy originates from ultra-high temperature magma inside the Earth, which is transmitted to the surface through crustal cracks or hydrothermal fluids. Fervo Energy uses horizontal drilling in geothermal reservoirs to increase electricity production. Unlike solar and wind energy infrastructure, geothermal energy is not affected by weather and seasons and can provide stable base load electricity. Therefore, geothermal power plants can operate 24 hours a day, using water instantly heated by underground rocks to generate electricity without generating carbon emissions.
With the rapid development of generative AI, ultra large data centers are consuming more and more electricity, and the energy behind it is also receiving more and more attention from AI giants.
A recent research report released by Goldman Sachs shows that AI is expected to drive a 160% increase in data center electricity demand by the end of 2030. Goldman Sachs predicts that in order to support AI data centers alone, US power utility companies will need to invest approximately $50 billion in next-generation power generation capacity.
Last month, Google also signed agreements with multiple Japanese renewable energy suppliers, including Japan's Clean Energy Connection (CEC) company and Shizen Energy company, to purchase clean electricity and build solar power plants specifically for Google's data centers. Google is also another AI giant investing in solar powered power in Japan, following Microsoft and Amazon.
OpenAI CEO Sam Altman has also invested in energy companies multiple times. At the end of April this year, OpenAI CEO Sam Altman invested in an energy startup called Exowatt, founded in 2023 with the aim of using solar energy to address the demand for clean energy in large data centers. The company stated that unlike traditional solar panels that directly convert sunlight into electricity, Exowatt converts solar energy into thermal energy, which belongs to photothermal power generation and stores energy in the form of thermal energy to reduce costs.
Previously, Ultraman also placed bets on Helion Energy, which is engaged in controllable nuclear fusion, and Oklo, a nuclear fission power generation company. Oklo was listed on the New York Stock Exchange last month. Altman stated at the Davos conference earlier this year that the AI industry is facing an energy crisis, and its electricity consumption will far exceed people's expectations.