Fervo Energy, supported by Bill Gates, increases its IPO target to $1.82 billion with a valuation of $7.4 billion.

      The geothermal developer raised its share count by 26% and increased its top price range by approximately 8% in an SEC filing on Monday. This adjustment highlights the demand for clean baseload energy that AI data center purchasers are willing to invest in.

      Fervo Energy announced 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, as stated in an SEC filing from the Houston-based geothermal developer.

      The company now intends to offer 70 million shares priced between $25 and $26 each, compared to the former range of 55.56 million shares at $21 to $24. At the peak of this new range, the listing would have a market value of roughly $7.4 billion based on Fervo’s total share count.

      This significant increase in both size and price is quite uncommon for an IPO that has yet to price. The rise in share numbers coupled with a higher price point typically indicates strong interest during the roadshow, leading underwriters and the company to believe that the order book can accommodate a larger transaction at elevated price levels.

      The top target of $1.82 billion would position Fervo as the largest climate-tech IPO of 2026 thus far, and one of the most substantial US IPOs in the energy sector since the post-2021 cycle began. JPMorgan is heading the syndicate.

      The list of investors backing Fervo includes notable names in AI and clean energy alignment. Bill Gates’s Breakthrough Energy Ventures has been a long-time supporter; Alphabet has made direct investments and is also a significant commercial client; Devon Energy and Shell have aligned Fervo with their own diversification efforts; and B Capital led the Series E round in December 2025 that raised $462 million.

      The investor composition is a key factor in enabling the IPO to be priced at its current levels. Each strategic investor contributes either commercial offtake interest or aligns with industrial policies that bolster the company's revenue growth.

      Fervo’s flagship project, Cape Station in Beaver County, Utah, is set to become the world's largest planned enhanced geothermal system with an installed capacity of 500 MW.

      Phase 1, approximately 100 MW, is currently under construction and is expected to deliver its first power to the grid later this year, with full completion targeted for 2028.

      The economic rationale is substantial: enhanced geothermal utilizes oil-and-gas drilling techniques to reach hot rock at depth, generating baseload power that operates continuously without the variability associated with solar and wind energy.

      For data center operators seeking a reliable source of clean energy, this is precisely what their power purchase agreements (PPAs) require.

      This same rationale also drives interest from equity markets. Investors who observed X-Energy’s record $1.02 billion nuclear IPO, emphasizing a data center-led nuclear strategy, are now looking to geothermal as the next clean baseload investment opportunity.

      The Cape Station project in Utah is progressing through a phase that the broader market has been eager to see validated before making commitments.

      Fervo’s ability to credibly project the delivery of first grid power within months, supported by 500 MW of future expansion, is reflected in the enhanced IPO target.

      The customer aspect further strengthens this investment. Alphabet entered into a multi-year PPA with Fervo for AI data center power in 2023; this contract has evolved alongside the project's development, making Alphabet both a customer and an equity investor.

      Other hyperscale customers are reportedly in advanced talks with Fervo. This trend mirrors Nvidia’s $2.1 billion commitment to IREN’s data center expansion, wherein Nvidia structured both a commercial agreement and an equity stake.

      This pattern aligns with what has characterized most clean-bases investment in 2026: AI data center buyers, faced with delays in grid interconnections and decarbonization obligations, are committing to offtake agreements long before operations commence, granting developers the cash flow visibility necessary for their public market valuations.

      Fervo has experienced widening losses in recent quarters, which is typical for a developer engaged in multi-year construction projects prior to generating revenue.

      The financial reports included in the S-1 indicate that the company will not achieve profitability for several years; the funds from the IPO are specifically allocated for completing Cape Station Phase 1, financing Phase 2, and undertaking a series of smaller projects in California and Nevada.

      Investors are valuing the company based on long-duration cash flows from the multi-year PPAs already signed, plus potential additional capacity to be developed once Cape Station is operational.

      From a market perspective, this size increase makes Fervo the most closely watched IPO of the second quarter. The initial target of $1.33 billion established a benchmark; the new range significantly expands the deal while maintaining the core narrative of the company.

      Pricing is anticipated for the week of May 11, with allocations finalized shortly thereafter. Bookrunner indications suggest that