Fervo Energy, backed by Bill Gates, has increased its IPO target to $1.82 billion with a valuation of $7.4 billion.

      The geothermal developer has raised its share count by 26% and increased its top-end price by approximately 8% in a filing with the SEC on Monday. This adjustment highlights the demand for clean baseload power that AI data center purchasers are eager to invest in.

      Fervo Energy disclosed on Monday that it has raised its IPO target to as much as $1.82 billion, up from $1.33 billion just over a week prior. The Houston-based developer now aims to sell 70 million shares priced between $25 and $26 each, compared to the earlier target of 55.56 million shares priced between $21 and $24. At the upper end of the revised range, the IPO would value the company at around $7.4 billion based on its outstanding share count.

      The magnitude of the size and price increase is notably large for an IPO that has yet to set a price. The combination of more shares and a higher price range generally indicates strong demand during the roadshow, suggesting that underwriters and the company believe the order book can support a larger offering at higher prices.

      The new top-end figure of $1.82 billion would position Fervo as the largest climate-tech IPO of 2026 to date and among the largest U.S. IPOs in the energy sector since the post-2021 cycle began. JPMorgan is leading the syndicate for this offering.

      Fervo's investor roster features a prominent mix of names aligned with AI and clean energy. Notably, Bill Gates’s Breakthrough Energy Ventures has been a long-time supporter; Alphabet has made direct investments and is a significant commercial customer; Devon Energy and Shell have aligned the geothermal company with their own diversification efforts; and B Capital led the December 2025 Series E funding round that totaled $462 million.

      The makeup of this investor base contributes to the IPO being able to be priced at its current level. Each strategic investor provides either commercial purchase interests or industrial-policy alignment that bolsters the company’s revenue prospects.

      Fervo's main project, Cape Station in Beaver County, Utah, is set to be the world’s largest planned enhanced geothermal system development, with an expected installed capacity of 500 MW. The first phase, estimated at around 100 MW, is under construction and is projected to provide initial grid power later this year, with complete construction anticipated by 2028.

      The economic rationale is substantial: enhanced geothermal utilizes oil-and-gas drilling methods to tap into deep hot rock, generating baseload power that operates continuously without the variability that affects solar and wind. This consistency is precisely what data center operators require in their power purchase agreements (PPAs).

      This rationale also fuels equity market interest. Investors who have observed X-Energy’s remarkable $1.02 billion nuclear IPO, which was driven by a data center-centric nuclear strategy, are now considering geothermal as the subsequent clean baseload opportunity.

      The Cape Station project has been moving through a phase that the broader market has been waiting to see validated before making commitments. Fervo’s ability to credibly expect first grid power within a few months, with 500 MW of expansion planned, is reflected in the heightened IPO target.

      The customer aspect strengthens this offering. Alphabet signed a multi-year PPA with Fervo for powering AI data centers in 2023; this contract has expanded as construction progresses, making Alphabet both a customer and an equity investor. Other large-scale customers are reportedly engaged in advanced negotiations. This mirrors Nvidia’s $2.1 billion investment in IREN’s data center development, where Nvidia made both a commercial commitment and an equity investment.

      This trend has characterized much of the clean baseload investment landscape in 2026: AI data center buyers, facing grid connection delays and decarbonization requirements, are securing off-take agreements well before commencing operations, which grants developers the necessary cash flow visibility for their public market valuations.

      Fervo’s losses have increased in recent quarters, which is usual for a developer conducting multi-year construction projects before generating revenue. The S-1 financial statements acknowledge that profitability is not expected for several years; thus, the IPO proceeds are designated for completing Cape Station Phase 1, financing Phase 2, and supporting a range of smaller projects in California and Nevada.

      Investors are evaluating the company based on long-duration cash flows under the signed multi-year PPAs, along with the potential for additional capacity to be constructed once Cape Station is operational.

      From a market perspective, the increase in size positions Fervo as the most closely watched IPO for the second quarter. Fervo’s original $1.33 billion target set a benchmark; the revised range substantially extends the deal without altering the company’s core narrative.

      Pricing is anticipated the week of May 11, with allocations to be finalized shortly thereafter. Preliminary indications from bookrunners suggest that the deal is currently significantly oversubscribed at the new range, although the exact multiple will not be confirmed until allocations are completed.

      There are potential challenges. Enhanced geothermal