Ormat Technologies has signed a 20-year Power Purchase Agreement (PPA) with AI provider Switch for the provision of clean renewable energy to serve the data centre industry.
This agreement represents Ormat’a first direct PPA with a data centre operator. Under the agreement, Switch will purchase approximately 13MW of renewable geothermal energy from Ormat’s Salt Wells power plant located near Fallon, Nevada.
As part of the agreement, Ormat has the option to further expand the facility’s output to switch by adding an approximately 7MW Solar PV facility, which will serve the auxiliary power needs of the geothermal power plant. The combined output will help support the power needs of Switch’s Nevada data centres, aligning with their commitment to carbon reduction.
Deliveries under the agreement are scheduled to commence in Q1 2030, following the completion of a major upgrade to the Salt Wells power plant, which will be finalised by Q2 2026.
Doron Blachar, Chief Executive Officer of Ormat, said, “We are excited to partner with Switch, a leader in the data centre industry, to supply reliable, zero-emission power from our Salt Wells geothermal facility. This agreement not only advances Switch’s sustainability goals but also underscores the growing demand for renewable energy within the data centre sector.â€
“Additionally, as we launch this partnership, we see potential for future re-contracting of over 100MW of our existing fleet under this framework. We are encouraged at the opportunity to continue growing this relationship with potential PPA expansion as well as additional new agreements to supply geothermal power to Switch as they continue scaling their business into the strong demand backdrop for the data centre industry and Switch’s specific capabilities.â€
Switch’s SVP of Energy Sustainability, Alise Porto, commented, “We are proud to enhance our diverse portfolio of renewable, Nevada-based energy sources and deepen our commitment to powering Switch’s data centres with renewable energy through this new long-term agreement with Ormat.
“As demand for AI and high-performance digital infrastructure accelerates, securing reliable, carbon-free baseload power is essential to supporting our customers and sustaining our growth. Geothermal energy offers the resiliency and sustainability profile required for the next generation of AI and cloud workloads, and this partnership enhances our ability to deliver world-class performance with a minimal environmental footprint.â€