Powering the cloud after 60 years underground: Ormat’s geothermal pivot to AI

For six decades, Ormat Technologies has pioneered geothermal power generation by leveraging underground reservoirs of high-pressure water or steam, primarily in the Pacific "Ring of Fire" region spanning Asia to the Americas. This strategy positioned Ormat as the world's leading geothermal operator. Now, the company seeks to capitalize on the burgeoning AI data center boom and expand its footprint throughout the Western United States using advanced technologies and enhanced geothermal systems (EGS).

EGS aims to construct geothermal power plants virtually anywhere, tapping deeper, hotter underground reservoirs with ease. Various pilot projects are underway, including collaborations with geothermal startup Sage Geosystems and SLB, the world's largest oilfield services firm. Ormat's CEO, Doron Blachar, is confident that the company is uniquely positioned to succeed in EGS due to its extensive land positions, contracts with major players, and expertise in permits, interconnections, and power plant development.

With revenues growing to $662.7 million in the first half of 2026 and a market cap of approximately $6.75 billion, Ormat appears well-placed to profit from the EGS revolution.