Geothermal energy developer Fervo Energy announced on Tuesday that its U.S. Initial Public Offering (IPO) has been upsized to raise $1.89 billion, underscoring robust investor appetite for the listing. The Houston-based company sold 70 million shares at $27 per share, giving the firm an approximate valuation of $7.66 billion. Earlier this week, the company had increased its pricing range from an initial $21-$24 per share to $25-$26 per share.

A surge in demand for data centers powering artificial intelligence workloads, coupled with accelerating electrification in transportation, housing, and other sectors, is straining U.S. power supplies. This dynamic is driving up electricity prices and increasing the need for reliable energy sources. Fervo has developed advanced geothermal systems capable of generating zero-carbon electricity around the clock, providing a dependable alternative to weather-dependent solar and wind power. The company is one of three businesses seeking multi-billion dollar IPOs this week, alongside artificial intelligence chipmaker Cerebras Systems and Blackstone Digital Infrastructure Trust. J.P. Morgan, BofA Securities, RBC Capital Markets, and Barclays served as joint lead bookrunners for Fervo Energy's offering. The company plans to list on the Nasdaq on Wednesday under the ticker symbol "FRVO".