Meta Inks a New Geothermal Energy Deal To Support AI

Meta has struck a new deal with geothermal startup XGS Energy to supply 150 megawatts of carbon-free electricity for its New Mexico data center. “Advances in AI require continued energy to support infrastructure development,” Urvi Parekh, global head of energy at Meta, said in a press release. “With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player in supporting the advancement of technologies like AI as well as domestic data center development.” The Verge reports: Geothermal plants generate electricity using Earth’s heat; typically drawing up hot fluids or steam from natural reservoirs to turn turbines. That tactic is limited by natural geography, however, and the US gets around half a percent of its electricity from geothermal sources. Startups including XGS are trying to change that by making geothermal energy more accessible. Last year, Meta made a separate 150MW deal with Sage Geosystems to develop new geothermal power plants. Sage is developing technologies to harness energy from hot, dry rock formations by drilling and pumping water underground, essentially creating artificial reservoirs. Google has its own partnership with another startup called Fervo developing similar technology.

XGS Energy is also seeking to exploit geothermal energy from dry rock resources. It tries to set itself apart by reusing water in a closed-loop process designed to prevent water from escaping into cracks in the rock. The water it uses to take advantage of underground heat circulates inside a steel casing. Conserving water is especially crucial in a drought-prone state like New Mexico, where Meta is expanding its Los Lunas data center. Meta declined to say how much it’s spending on this deal with XGS Energy. The initiative will roll out in two phases with a goal of being operational by 2030.