Meta is expanding its geothermal energy initiatives through a new partnership aimed at enhancing energy production in New Mexico.
The company announced its collaboration with XGS Energy, a firm focused on developing innovative geothermal technologies that enable the utilization of geothermal energy in previously unsuitable locations. The objective is to contribute 150 megawatts of carbon-free electricity to the local power grid supporting Meta’s data center operations.
As demand for energy grows, particularly for artificial intelligence applications, Meta faces the pressing need for increased electricity supply. This rising demand is fostering growth among geothermal startups such as XGS Energy.
This rising demand is fostering growth among geothermal startups such as XGS Energy
“Advances in AI require continued energy to support infrastructure development,” stated Urvi Parekh, Meta’s global head of energy, in a press release. “With next-generation geothermal technologies like XGS ready for scale, geothermal can significantly support advancements in technologies such as AI, as well as domestic data center growth.”
Utilizing the Earth’s heat, geothermal plants generate electricity by extracting hot fluids or steam from natural reservoirs to turn turbines. However, the geographical limitations of this method mean that geothermal sources currently account for only about half a percent of the electricity generated in the United States.
Companies like XGS Energy are working to change this dynamic by enhancing the accessibility of geothermal energy. Last year, Meta struck a separate agreement for an additional 150 MW of geothermal power with Sage Geosystems, which is developing techniques for harnessing energy from hot, dry rock formations by drilling and injecting water underground, essentially creating artificial reservoirs. Similarly, Google has partnered with Fervo, another startup exploring comparable technologies.
XGS Energy is also focused on extracting geothermal energy from dry rock resources, differentiating itself by implementing a closed-loop system that recycles water, preventing it from escaping into rock fractures. This water circulates within a steel casing to maximize efficiency. Such water conservation practices are particularly important in drought-prone areas like New Mexico, where Meta is in the process of expanding its Los Lunas data center.
Details regarding the financial terms of Meta’s agreement with XGS Energy have not been disclosed. The rollout of this initiative is planned in two phases, with operational status expected by 2030.
In 2020, Meta pledged to achieve net zero emissions by the end of the decade. However, the energy demands of its data centers may complicate these goals, necessitating a transition to cleaner energy sources. Recently, Meta announced intentions to increase its access to carbon-free electricity by revitalizing an old nuclear reactor. Conversely, a utility company in Louisiana has proposed the construction of three new gas-fired power plants to facilitate a new Meta data center in that region. Despite these efforts, Meta and other tech giants have reported increasing levels of greenhouse gas emissions as they strive to meet their AI ambitions.
