Ormat: Geothermal Leader Riding the AI Electricity Curve

Ormat is the country’s longest-running climate infrastructure company — a geothermal power operator founded in Yavne in 1965 that now owns and operates energy assets globally, with direct exposure to rising data-center demand for firm power.

Founded in Yavne in 1965. Dual-listed on NYSE (since 2004) and TASE (since 1991). FY2025 revenue $989.5 million (+12.5% YoY). Net income $123.9 million. Total generating portfolio 1.7 gigawatts across geothermal, energy storage and solar. Q1 2026: $1 billion convertible note offering closed at attractive terms; announced 150 MW PPA supporting Google data-center operations through NV Energy. The Israeli climate-tech operator most directly exposed to firm, clean power demand from AI data centers.

Ormat has the longest infrastructure footprint and the cleanest exposure to AI-driven electricity demand of any Israeli climate operator. The company has built over 190 power plants, installed more than 3,200 MW of output, and manufactures from facilities in Yavne. It is part of the TA-35 Index and the Tel Aviv Tech-Elite Index. The 2025–2026 inflection is structural: data-center load is now a primary tailwind.

What Ormat does

Three segments — Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns and operates geothermal, solar PV, and recovered-energy-based plants. The Product segment designs and manufactures geothermal turbines, generators and heat exchangers — a vertically integrated capability uncommon in the sector. Energy Storage deploys battery storage at utility scale.

As of December 31, 2025, the total generating portfolio was 1.7 gigawatts. Geothermal accounted for 81.3% of Electricity segment generation capacity. Ormat describes itself as the third-largest geothermal producer in the United States.

The numbers — FY2025 and Q1 2026

Full year 2025 (company release, February 25, 2026):

Revenue: $989.5 million (+12.5% YoY)
Net income: $123.9 million
Adjusted EBITDA: +5.7% YoY
39 MW of new or expanded geothermal capacity

Q1 2026 (company release, May 6, 2026):

$1 billion convertible notes offering closed at attractive terms
Full-year 2026 guidance reiterated
150 MW geothermal portfolio PPA supporting Google’s data-center operations through NV Energy

The Israel exposure

In February 2025, the company won an Israeli Electricity Authority tender for two 15-year tolling agreements covering Energy Storage facilities with combined capacity of approximately 300 MW / 1,200 MWh, structured 50/50 with Allied Infrastructure (Israel). The company described it as its first major entry into the country’s utility-scale energy storage market.

That win matters two ways. It confirms a pivot from primarily international deployment (US, Indonesia, Kenya, Chile) toward the home market. It positions the company for the next 5–10 years of grid expansion at home.

The AI electricity story

Ormat plans to add 149 MW of new capacity by the end of 2027, with geothermal contributing 101 MW. The company has committed $180 million to energy-storage construction, with six projects under development expected to add 410 MW / 1,540 MWh, and is targeting an energy-storage portfolio of 950–1,050 MW / 2,500–2,900 MWh by the end of 2028.

The Google PPA is the proof point. Hyperscale data-center demand is structurally underserved by intermittent renewables alone. Geothermal (baseload, 24/7, low-carbon) and battery storage (peak shaving, frequency regulation) match the demand curve. Ormat operates both.

What it signals

Ormat sits at the intersection of US energy policy (data-center demand), Israeli infrastructure expansion (the 300 MW storage tender), and global geothermal scaling. The $1 billion convertible raise capitalizes the next three years of buildout. The Google PPA validates the demand thesis. The Israeli storage win secures the home market.

The cohort context

Ormat is the cohort’s steady cash generator — profitable, dual-listed, and consistent for two decades while other Israeli climate-tech operators have repositioned or restructured. The closest local analog to a regulated utility, sitting on a demand curve that is bending sharply upward.

Ormat sits at the intersection of climate resilience, baseload electricity, and the next global energy demand cycle.

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The Olam Editorial Team

Ormat Technologies: The Israeli Geothermal Leader Riding the AI Electricity Curve