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Houston energy resiliency company collaborates on carbon-neutral grid project for Microsoft data center

A carbon neutral data center back-up grid is coming soon to Microsoft — thanks to tech from a Houston company. Photo by Christina Morillo/Pexels

Microsoft is one step closer to its goals of being carbon negative by 2030 thanks to a new initiative involving a Houston energy company.

Houston-based Enchanted Rock has teamed up to provide its electrical resiliency-as-a-service and ultra-low-emission generators to Microsoft’s new data center in San Jose, California.

Along with Wisconsin-based U.S. Energy, a vertically integrated energy solutions provider, the partnership will procure renewable natural gas for the data center during grid outages and when California’s Base Interruptible Power is activated. Previously, Microsoft announced its plans for carbon neutrality by 2030.

“Enchanted Rock has always been committed to using the cleanest fuel available without compromising on reliability for our customers,” Thomas McAndrew, founder and CEO of Enchanted Rock, says in a news release. “After announcing our renewable natural gas solution in 2021 and this particular Microsoft data center project in 2022, we’re proud to be taking this important next step toward seeing this key technology in operation."

Enchanted Rock, founded in 2006, provides microgrid technology that use natural gas and renewable natural gas, providing for lower emissions and pollution than diesel generators. The company also provides a software platform, GraniteEcosystem, for users for constant management, analytics, and more.

The RNG for the will be delivered by U.S. Energy and sourced from diverted food waste. Per the release, the agreement allows for flexibility in the amount of RNG supplied, which is scheduled to begin being procured by early 2026, so that the initiative will meet its evolving standards for emissions reduction.

“Energy resilience is crucial with data centers like this one,” president of U.S. Energy, Mike Koel, says in the release. “Through our portfolio of 40 renewable natural gas projects, we’re able to ensure our customers have the supply needed to meet any additionality requirements. As we continue to grow our portfolio, our partnership with Enchanted Rock will help more organizations take that next step in their carbon reduction goals.”

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A View From HETI

The deal builds upon an existing partnership between Fervo and Google. Photo courtesy Fervo Energy

In its largest-ever purchase agreement, Houston-based geothermal company Fervo Energy will supply 396 megawatts of power to tech powerhouse Google.

The deal includes an option for Google to expand capacity by about 600 megawatts, for a total of 1 gigawatt, by June 2030, according to a news release from Fervo. Financial terms weren’t disclosed.

Google will purchase carbon-free energy from Fervo for a potential data center in Utah, where Fervo is building its more than $2 billion Cape Station geothermal project.

Fervo applies oil-and-gas fracking technology to create geothermal reservoirs and generate electricity.

The first phase of Cape Station is expected to begin delivering geothermal power by late 2026, reaching about 100 megawatts of capacity by early 2027. The second phase, set for completion in 2028, will add 400 megawatts of capacity.

Fervo co-founder and CEO Tim Latimer said in a release that the Google agreement supports enhanced geothermal systems as a key power source for “the next generation of computing infrastructure.”

“The next chapter of advanced power generation technology is being written in Utah,” said Lucia Tian, director of advanced energy technologies at Google.

The Fervo-Google agreement builds on an existing partnership. Fervo’s Project Red pilot development in Nevada, which came online in 2023, supplies power to the local grid. Users of the grid power include Google’s data centers in Nevada.

Fervo subsequently signed a 115-megawatt purchase agreement with Google and NV Energy. The deal enabled Google to bring more geothermal energy to the Nevada grid while insulating everyday customers from the project’s costs.

The latest Google deal is part of the ongoing expansion of Cape Station beyond its initial 100-megawatt phase. Fervo says Cape Station will be the world’s largest enhanced geothermal facility.

The Google agreement comes during a milestone year for Fervo, which was founded in 2017. In May, Fervo’s IPO raised $2.2 billion. The company, whose early investors include Bill Gates, is now valued at $5.65 billion.

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