Ormat Technologies announced a 20‑year power purchase agreement with Switch, the leading designer and operator of AI data centers, that will deliver approximately 13 MW of clean geothermal power from Ormat’s Salt Wells plant near Fallon, Nevada. The contract also includes an option to add a 7 MW solar photovoltaic facility to support Switch’s auxiliary power needs.
The Salt Wells facility is undergoing a scheduled upgrade that is expected to be completed in the second quarter of 2026. Once the upgrade is finished, the plant will be able to supply the agreed 13 MW of geothermal energy to Switch, with the option to expand the solar component if needed. The first delivery of power under the agreement is slated for the first quarter of 2030, giving Ormat a long‑term, high‑margin revenue stream that begins well after the upgrade is complete.
This partnership marks Ormat’s first direct PPA with a data‑center operator and signals a strategic pivot toward the rapidly growing AI and cloud‑computing market. By securing a 20‑year contract, Ormat not only diversifies its customer base beyond traditional utilities but also positions itself to capture the premium pricing that AI workloads demand for reliable, carbon‑free baseload power. Management indicated that the deal could serve as a template for recontracting over 100 MW of the company’s existing fleet under similar agreements, potentially accelerating revenue growth and reinforcing Ormat’s competitive edge in the renewable‑energy space.
CEO Doron Blachar said the partnership “expands our reach into the high‑growth data‑center sector and underscores the growing demand for renewable energy within AI operations.” He added that the agreement “provides Switch with reliable, zero‑emission power and opens the door for future recontracting of over 100 MW of our fleet.” Switch’s SVP of Energy & Sustainability, Alise Porto, noted that “geothermal energy offers the resiliency and sustainability profile required for the next generation of AI and cloud workloads.”
Following the announcement, market participants reacted positively. Analysts highlighted the deal’s long‑term nature and the strategic importance of entering the AI data‑center market, which is experiencing exponential growth. The agreement’s potential to unlock additional contracts across Ormat’s portfolio was cited as a key driver of investor enthusiasm.
The PPA demonstrates Ormat’s ability to secure high‑margin, long‑term contracts in emerging markets, reinforcing its strategy to grow revenue through diversified, renewable‑energy sources while supporting the sustainability goals of its new data‑center customers.
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