AI competitions fueled by Fervo, Constellation, and Form Energy

In the dynamic world of energy, three companies - Constellation Energy, Form Energy, and Fervo Energy - are making significant strides, adapting to changing demands and policy landscapes.

Constellation Energy is experiencing a shift in demand from Fortune 100 customers seeking power to build their own data centers. This shift is evident in the company's deal with Microsoft to restart the remaining reactor at Three Mile Island, a move that Mike Kramer, VP of data economy strategy at Constellation Energy, considers a game-changer that has opened doors previously closed to the nuclear sector.

The Three Mile Island project is progressing ahead of schedule and under-budget, with Constellation Energy already hiring 300 workers for the project, many of whom worked on the reactor before its retirement in 2019. The company's recent $16.4 billion purchase of natural gas and geothermal developer Calpine, one of the country's largest power sector acquisitions, further expands Constellation Energy's portfolio.

Form Energy, a 100-hour battery startup, is experiencing increased demand for firm capacity from utilities and developers. Sam Simmons, head of domestic business development at Form Energy, notes that demands are compressing the company's manufacturing timelines. Investors are eager to build quickly before the next series of changes lands due to the constantly-shifting policy landscape in the U.S.

Fervo Energy, a geothermal developer, is at the forefront of the AI boom's impact on the energy sector. Dawn Owens, head of development and commercial markets at Fervo, mentions that the AI boom has helped the company "get in the room and have creative conversations with offtakers about early funding." Fervo's commercial-scale project in Utah, designed to power data centers, is set to become the world's largest enhanced geothermal project.

However, Fervo faces potential risks from policy changes, much like its counterpart, Fervo. The change of law provisions in power purchase agreements could cause them to either disappear or increase in price, potentially harming all parties involved. Despite these short-term concerns, all three executives express confidence in the long-term fundamentals for firm power.

As these companies navigate the complexities of the energy sector, they are not only shaping the future of clean, firm power but also transforming from emerging tech startups to critical infrastructure players. The urgency in national security terms is driving innovation in regulatory approaches and financing structures, ensuring a robust and sustainable energy future.