Tech firms opt for Geothermal energy to power their data centers amid rising demand for AI

Meta announced that it had signed a deal with XGS Energy for 150 megawatts of advanced geothermal electricity in New Mexico.

The reason behind this is to help fuel Facebook’s parent company’s efforts to expand its artificial intelligence, the company said on Thursday, June 12.

Giant tech companies like Meta are making unprecedented power deals to lock in sizable amounts of electricity for data centers required to build AI, a leading driver of record US power consumption forecast in 2025 and 2026.

Tech firms opt for Geothermal energy to power their data centers amid rising demand for AI 

Geothermal energy, which does not create climate-warming carbon emissions, has become an electricity source among major tech companies. These tech firms have goals aimed at reducing emissions. Unlike traditional geothermal power generation, advanced geothermal power generation is not dependent on natural water sources.

Technology companies with AI and data centers use geothermal energy more frequently because it offers a steady, dependable, low-carbon power source. This is important since data centers that support AI require a lot of electricity.

The project between XGS and Meta will be rolled out in phases and is expected to be up and running by the decade’s end. The geothermal electricity generated will go into the electric grid and help power Meta’s operations in New Mexico. 

In a statement, Urvi Parekh, Global Head of Energy at Meta, highlighted that next-generation geothermal technologies like XGS are ready to expand. According to Parekh, this is essential as it would make geothermal energy an important resource for supporting advancements in AI technology and building data centers at home.

She further stated that they were thrilled to work with XGS to create a new type of energy supply for their activities in New Mexico.

Interestingly, New Mexico, which has a stake in the largest shale oil basin in the world, holds 160,000 megawatts of unused geothermal energy potential. 

Although 150 megawatts is a small part of the many gigawatts that tech companies need for AI, it still accounts for about 4% of all geothermal energy produced in the US.

Google also announced last year that it planned to power its data centers with advanced geothermal energy created by Fervo Energy. 

Google opt for Geothermal energy, a step closer to its goal of running entirely on clean energy 

Like Meta, Google struck a deal with Berkshire Hathaway electric utility NV Energy to provide its Nevada data centers with cutting-edge geothermal energy. As a result, according to reliable sources, Fervo Energy teamed up with NV Energy to provide geothermal energy for Google’s data centers. 

The deal was first sent to state utility regulators for approval. According to a statement from Google, the deal would boost the total of carbon-free geothermal electricity sent into the local power grid for the company’s consumption to 115 megawatts from 3.5 megawatts within roughly six years,

The collaboration took Google closer to its goal of running entirely on clean energy by 2030. The company said it will invest at least $4 billion to construct or expand data centers in Indiana, Missouri, and Virginia.

According to the latest environmental report from Google, the company’s worldwide operations use 64% carbon-free energy from sources like wind and solar. 

Their partnership with NV Energy offered a fresh solution for companies with huge electricity needs and climate goals in regulated power markets. 

In these regulated markets, businesses must buy power from local utilities instead of directly from power producers. This can make it hard for companies that want to use only clean energy. 

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