3 U.S. Power Stocks Linked To Data Center Demand After Fervo Energy News

Hyperscalers are scrambling for clean, always on electricity to feed power hungry data centers, and Fervo’s enhanced geothermal breakthrough has pushed this race into a new gear. That shift is rippling through a small group of recently listed U.S. stocks that are closer to this story than most investors realize. This article examines three stocks with exposure to that news and explains why each might warrant a closer look on your watchlist.

The stocks covered below are just a starting sample, and the full screen surfaced 7 more U.S. companies tied to the clean power for data centers theme with equally compelling narratives that are not included in this article. To identify and analyze your own high conviction angles on this trend, head straight into the Clean Power for Data Centers screener.

Fervo Energy (FRVO)

Overview: Fervo Energy is a pure-play U.S. developer, owner, and operator of enhanced geothermal power plants that supply firm, emissions free baseload electricity tailored to 24/7 data center and hyperscaler demand through long term power purchase agreements. Founded in 2017 and headquartered in Houston, the company focuses on large geothermal clusters in the Western U.S. that are being structured around data center grade power needs and utility offtake.

Market Cap: US$5.1b

Fervo Energy sits at the front of the clean power for data centers theme because it is building enhanced geothermal projects designed to supply around the clock, carbon free power under long duration PPAs, including a high profile deal with Google and about 1 GW of contracted capacity. The upcoming commercial launch of Cape Station in Utah and a multi gigawatt Google framework agreement show how closely the business model is tied to hyperscaler and AI workloads, yet the company is still early with a small current revenue base and ongoing losses as it spends heavily on drilling and construction. Investors intrigued by a pure play, firm clean power supplier to data centers, but mindful of execution, cost and financing risks, may want to look more closely at how Fervo’s contracted backlog, GeoBlock rollout and policy support could affect its long term earnings path.

Fervo Energy’s contracted Google deal and 1 GW backlog hint at a much bigger story that many investors may be missing. Before this geothermal thesis gets crowded, review the 2 key rewards and 2 important warning signs (2 are major!)

Fermi (FRMI)

Overview: Fermi builds large scale private electric grids that deliver highly redundant, gigawatt level power directly to AI and high performance data center campuses, starting with its 17 GW behind the meter Project Matador site in Texas that blends natural gas, nuclear, solar, batteries and grid power to support hyperscalers and next generation compute tenants.

Market Cap: US$3.1b

Fermi is one of the clearest pure plays on the scramble for dedicated data center power, with Project Matador pitched as a long duration, behind the meter grid built around AI tenants rather than general utility demand. The 15 year TensorWave lease, worth about US$6.5b over its initial term for 222 MW with options up to 650 MW, shows that at least one large customer has put real money behind Fermi’s concept and treats the campus as a turnkey power plus data center solution. Yet Fermi is still pre revenue, requires more than US$3b of capital for early phases, and relies heavily on project financing, so any delay in bringing more tenants or funding on board could weigh on the story. For investors who can handle those risks, the mix of multi gigawatt permits, a growing ecosystem of AI customers and partners, and a first anchor lease linked to hyperscale style demand positions Fermi as a high risk, high potential way to get exposure to the clean power for data centers theme beyond pure generation plays such as Fervo.

Fermi’s 17 GW Project Matador and US$6.5b anchor lease hint at an accelerating build out that many investors may be underrating. Get the full picture in the 2 key rewards and 4 important warning signs (3 are major!)

Deep Fission (FISN)

Overview: Deep Fission develops small modular nuclear reactors installed one mile underground to supply carbon free, firm baseload power that can be colocated with or directly serve data centers and other heavy users that need reliable electricity. The company manages reactor design, licensing and deployment, and also offers advisory and partnership services that use artificial intelligence to streamline ongoing operations.

Market Cap: US$421 million

Deep Fission provides exposure to one of the clearest long term ideas in the clean power for data centers theme: nuclear systems sized for single campuses rather than entire grids. Recent milestones, including a Department of Energy Nuclear Safety Design Agreement and a pilot at Great Plains Industrial Park with data center linked letters of intent totaling up to 18.5 GW, indicate that the concept is starting to move from pitch deck to field work. On the other hand, there are significant risks. Deep Fission is unprofitable, carries a cash runway of less than a year, leans on higher risk external borrowing and has a young leadership team, all on top of complex regulation. If these elements develop favorably, the company could represent an early stage way to gain exposure to near site, 24/7 nuclear power for AI workloads before the story matures.

Deep Fission’s underground reactors tie AI demand to carbon free baseload power in a way most investors have only started to notice. To see how that story compares with its funding risks, read the analysis report for Deep Fission

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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