Geothermal energy startup Fervo Energy achieved success in its stock market debut. The company's market valuation exceeded $10 billion, driven primarily by the high demand for electricity from artificial intelligence (AI) data centers. This was reported by Techcrunch.com reports .
During Wednesday's IPO, Fervo Energy raised $1.89 billion. Due to significant investor interest, the company had to increase its share price twice, ultimately selling each share for $27. Trading under the ticker FRVO on the Nasdaq, the company's shares rose 33% on their first day.
Fervo Energy converts underground heat into electricity using directional drilling technologies applied in the oil and gas industry. The company will invest these funds in developing the Cape Station power plant in Utah. Once the first phase of the project is completed, the station is expected to produce 500 megawatts of power.
According to Sarah Jewett, Vice President of Strategy at the company, there are heat sources in the Cape Station area capable of generating up to 4 gigawatts. Currently, many technology companies are expressing interest in partnering directly with Fervo Energy to provide continuous power to their data centers.
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