On Thursday, shares of Fervo Energy Co. (FRVO) opened 7% higher, climbed as much as 12% during intraday trading, and were last up 7%.

The move followed news that the geothermal-focused company's Cape Station geothermal development project in Utah has achieved first power generation. The company said this marks the first time a utility-scale enhanced geothermal development project anywhere in the world has reached this milestone.

AI computing power is placing higher demands on stable electricity supply. Recently, tech giants including Google, Amazon, and Meta have stepped up their efforts to diversify clean energy power supply. Fervo Energy Co. (FRVO) has already signed a major power purchase agreement with Alphabet's Google, aiming to turn its Utah project into the world's largest enhanced geothermal power generation facility.

Under the agreement, Fervo will supply nearly 400 megawatts of power to Google, enough to meet the electricity needs of a medium-sized city, making it Fervo's largest power supply deal to date. Fervo plans to begin supplying power to Google from 2028 through the Cape Station project in southwestern Utah.