Meta Partners with XGS Energy to Develop Geothermal Power for AI Expansion
Meta has entered into an agreement with XGS Energy to develop 150 megawatts of advanced geothermal electricity in New Mexico to support its expanding artificial intelligence (AI) operations, as reported by Reuters.
This deal highlights the growing need for sustainable and reliable energy sources to power the massive data centers required for AI development, a key driver of the projected increase in US power consumption for 2025 and 2026.
The Importance of Geothermal Energy in AI Growth
As the demand for AI continues to surge, tech giants like Meta are securing long-term power contracts to ensure the sustainability of their operations.
Geothermal energy, which produces zero climate-warming carbon emissions, has emerged as a popular choice for these companies due to its ability to provide consistent and reliable electricity. This move also aligns with Meta's goal of reducing its carbon footprint, as geothermal energy is a clean alternative to traditional fossil fuel-based power generation.
Unlike conventional geothermal energy, which relies on natural water sources, advanced geothermal technology, like the one being developed by XGS Energy does not need water to generate power.
This technology, which is also being utilized by other tech companies such as Google, represents a more efficient and scalable energy solution for data center needs.
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Context and Potential Impact
According to Reuters, Although the 150 megawatts planned in the Meta-XGS deal is a small fraction compared to the gigawatts of power required by large tech companies, it still represents a significant contribution to the US geothermal sector, accounting for about 4% of the nation's total geothermal power production.
The project will tap into New Mexico's vast geothermal potential, with the state having an estimated 160,000 megawatts of untapped geothermal capacity.
The phased project is expected to be operational by the end of the decade, and the advanced geothermal power will be integrated into the electric grid to support Meta’s data centers in the state.
Urvi Parekh, Meta’s Global Head of Energy, said, “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.”
She added, “We’re excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico.”
XGS Energy’s collaboration with Meta signals a significant step towards unlocking new, sustainable energy solutions for the tech industry's power needs, further cementing geothermal as a key player in the transition to cleaner energy.
