The AI buildout has a power problem, and most investors are still looking in the wrong place for the fix. Nuclear gets the headlines. Solar and batteries get the subsidies. But the fastest, cheapest new power source hitting the grid right now is one most portfolios don’t own at all: geothermal.
That gap is exactly why it matters. Dylan Jovine, CEO of Behind the Markets, argues that every major tech cycle has been driven by an energy breakthrough, and this one is no different. He’s laid out the full case in his dedicated geothermal energy report, and the short version is that data center demand is outpacing the grid, with the companies solving that bottleneck first positioned to capture outsized value before Wall Street catches up.
Why the AI Race Is Really an Energy Race
Hyperscalers need power now, not in a decade. Nuclear plants can cost upward of $14 billion and take years to permit, which puts them years away from meeting today’s data center load. Geothermal energy projects, by contrast, can come online for a fraction of that cost and in a fraction of the time.
Jovine frames the stakes in geopolitical terms, too. China has built a commanding lead in battery and clean energy manufacturing, while the United States still holds the edge in oil and gas infrastructure built up over more than a century. Geothermal, in his view, is one of the few energy categories still up for grabs, which is exactly why the companies moving fastest right now matter more than the headlines suggest.
That math is why Alphabet (NASDAQ: GOOGL), NVIDIA (NASDAQ: NVDA) and Berkshire Hathaway (NYSE: BRK.B) have been signing multibillion-dollar geothermal partnerships with little public attention. The technology draws on heat from the earth’s core, a resource that doesn’t fluctuate with commodity prices and produces a cleaner emissions profile than coal or gas. It just hasn’t had its moment in the headlines yet.
Fervo Energy Locks in Billions Before It Earns a Dime
Fervo Energy (NASDAQ: FRVO) went public earlier this year and, like many fresh IPOs, has spent recent months working through post-listing volatility as early lockup-related selling pressure works its way out of the stock. That volatility says little about the underlying business.
What stands out is the customer list. Fervo has already secured contracts with Google and other major technology players tied to its Cape Station project in Utah, with additional plants expected to come online through 2026 and 2027. Jovine expects those contracts to begin flowing through the income statement in the back half of 2026, which he argues could force a re-rating as the stock moves from a story to one backed by reported earnings. He puts the window for that shift at 12 to 18 months, the timeline he sees as most worth tracking.
Ormat Technologies Shows What Fervo Could Become
Ormat Technologies (NYSE: ORA) has been building geothermal plants for years, and its results offer a preview of where a maturing operator can land. The company has been growing its top line by roughly 50% and its bottom line by about 30%, evidence that hyperscaler demand for geothermal power is translating into real financial performance, not just headlines.
Shares have pulled back from their 2026 highs, which could make for a more attractive entry for investors who missed the initial run.
Jovine sees Ormat’s bigger, more established hyperscaler contracts as a preview of where Fervo could land in a few years, and views scale and a multi-decade track record as Ormat’s real edge when hyperscalers are choosing long-term power partners.
Baker Hughes Sells the Equipment Behind the Buildout
Not every way to invest in geothermal means picking the operator. Baker Hughes (NASDAQ: BKR) supplies the drilling technology and equipment that companies like Fervo rely on to build new plants, giving it exposure to the entire sector’s growth rather than any single project’s execution risk.
Shares pulled back sharply this year alongside a broader rotation out of momentum sectors, and Jovine argues the stock now trades at a discount to its underlying cash flow. He frames it as a classic value setup, a picks-and-shovels position in a growing niche trading below what the opportunity is worth.
What Investors Should Watch Next
Geothermal doesn’t need to replace nuclear or solar to matter. It just needs to keep winning contracts every time a hyperscaler needs power fast and cheap. The risk is execution: drilling projects can run into delays, and newer entrants like Fervo still carry more uncertainty than established names like Ormat. It’s also worth remembering this isn’t a winner-take-all race. Demand for power is so large right now that multiple energy sources, from geothermal to natural gas to solar, are all finding buyers at once.
The upside is that almost nobody is pricing this in yet. Stay focused on how quickly these contracts convert into reported revenue, because that’s what will ultimately move these stocks.
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