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May 12 (Reuters) - Geothermal energy developer Fervo Energy said on Tuesday it has raised $1.89 billion in its upsized U.S. initial public offering, highlighting robust investor appetite for the listing.

The Houston-based company sold 70 million shares at $27 apiece, securing a valuation of roughly $7.66 billion. The price range was lifted earlier this week to $25 to $26 per share from $21 to $24.

Surging demand from data centers supporting artificial intelligence tasks, coupled with rapid electrification across transportation, housing and other industries, is tightening U.S. power supply, driving up electricity prices and boosting the need for reliable energy.

Fervo ​develops advanced geothermal systems that generate round-the-clock, carbon-free electricity, offering a dependable alternative to weather-reliant solar and wind power.

It is one of the three companies seeking to price billion-dollar IPOs this week, along with AI chipmaker Cerebras Systems and Blackstone Digital Infrastructure Trust.

J.P. Morgan, ⁠BofA Securities, ​RBC Capital Markets and Barclays were the ​joint lead book-running managers for the Fervo Energy offering. The company aims to list on the Nasdaq under the symbol "FRVO" on Wednesday.