Geothermal startup Fervo Energy to raise up to $1.3B in IPO

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May 5, 2026, 12:13 AM

• •Fervo Energy seeks $1.3B in IPO.
• •Valuation could reach $6.5B.
• •Driven by tech-driven electricity demand.
• •Focus on reducing power generation costs.

Geothermal startup Fervo Energy plans to raise up to $1.3 billion in its initial public offering, potentially reaching a $6.5 billion valuation. This is a significant increase from earlier expectations, mirroring the success of nuclear power startup X-energy's recent IPO. Both companies benefit from rising electricity demand, particularly from tech companies powering AI data centers, which has driven up the cost of natural gas plants. Fervo aims to make its Cape Station power plant cost-competitive by reducing electricity generation costs per kilowatt.

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