The numbers come first. Ormat Technologies reported revenues of $662.7 million for the first half of 2026, a 43% increase from the same period last year, on a net profit of $71.2 million — up 4% year-on-year. The stock has climbed nearly 20% over the past 12 months, pushing the company's market cap to approximately $6.75 billion. For a company that has spent six decades drilling into the earth, Wall Street is suddenly paying close attention.
The reason is straightforward: AI data centers need massive, uninterrupted baseload power, and geothermal — unlike solar or wind — delivers it around the clock. Ormat CEO Doron Blachar, who joined the company as CFO in 2013 and took the top job in 2020, sees the moment clearly. 'We're in a very rare situation where all the stars are aligned exactly on time,' Blachar told Fortune. 'We have the hyperscalers and the AI demand. This basically puts us in a situation where we see endless demand for our product.'
Ormat's current operational portfolio stands at 1.85 gigawatts — enough to power 1.4 million U.S. homes or roughly two large data center complexes. The company's 2028 target is to reach up to 2.8 gigawatts through traditional geothermal and battery storage alone, before counting any contribution from its next frontier: enhanced geothermal systems, or EGS.
EGS is the strategic bet that could separate Ormat from every other player in the sector. The technology marries conventional geothermal development with modern oil-drilling and fracking techniques, allowing power plants to be built almost anywhere by tapping deeper, higher-temperature underground reservoirs. Ormat is running two separate EGS pilot projects in Nevada — one with geothermal startup Sage Geosystems at its Blue Mountain plant, and one with SLB, the century-old oilfield services giant, at its Desert Peak facility. The company is also working directly with Google and data center developer Switch.
'There is no company in the industry that can take advantage of EGS better than Ormat,' Blachar said. 'We have been here for 60 years. We are big in power plants. We know how to build them efficiently and how to operate them.'
The competitive context matters. EGS startup Fervo went public in May in what was described as the biggest clean energy IPO ever in the U.S., with its market cap briefly hitting $10 billion before pulling back to $5 billion following setbacks. Ormat, by contrast, is profitable today — outside of its pilot projects — and carries a market cap of roughly $6.75 billion with a real operating business underneath it.
Beyond Nevada, Ormat has acquired new acreage in New Mexico, Oregon, and Idaho, and Blachar has flagged Texas as a target. Internationally, Indonesia remains the company's largest growth area outside the U.S., though Blachar noted the pace there is slower and the company is 'much more cautious' relative to its domestic risk appetite.
The editorial read is this: Ormat is exactly the kind of company a free-market energy framework produces — privately built, globally competitive, profitable without a subsidy lifeline, and now positioned at the intersection of two of the most capital-intensive trends in the American economy. While Washington debates energy policy, Ormat has spent 60 years building the physical infrastructure that AI will depend on. Capital rewards clear rules and real assets. Ormat has both.
