Big Tech sees big potential in geothermal energy By EPN Staff Facebook parent company Meta has signed a new agreement in New Mexico to develop 150 megawatts of geothermal power, another shot-in-the-arm for a growing technology that benefits from Big Tech’s embrace. The agreement, with Houston startup XGS Energy, is one of several announced in recent years that would rely on untapped geothermal potential, particularly in western states, to fuel an energy-hungry artificial intelligence boom. This is Meta’s second major geothermal deal, after last year’s announced partnership with Sage Geosystems, which is also based in Houston. Why it matters Tech companies are scrambling to find the massive amounts of new energy needed to power artificial intelligence data centers, and the decisions these companies make will help drive success for various forms of generation. “Deals like the one between XGS and Meta are key to popularizing geothermal technology,” as Latitude Media noted in coverage of the announcement. “Startups in the sector need to prove the technology works and that they can build plants on time and budget. “Contracts with deep-pocketed counterparties such as Meta make it easier for companies like XGS to raise and borrow money to take the next steps in building out its business.” The bigger picture Meta has made significant plays in other energy generation technology, including a 20-year nuclear deal in Illinois with Constellation Energy. The company’s planned $10 billion data center in Louisiana will be powered by three new combined-cycle gas turbines as well as new solar arrays. Meta says it operates one of the world’s largest corporate renewable energy portfolios with more than 11,700 megawatts under contract worldwide and 6,700 MW online in the United States. Even so, Meta, like other major tech companies, has grown far faster than it can decarbonize, making its previously announced 2030 net zero carbon goals “significantly harder” to achieve, according to the company’s 2024 sustainability report. Additional details Geothermal energy generates less than 1% of power consumed in the United States, according to the U.S. Geological Survey, but that could change quickly. In its latest survey, the USGS said western states have the potential to produce one-tenth of the current U.S. power supply.
