In a significant move toward sustainable energy, tech major Meta has announced a collaboration with US-based startup XGS Energy to support the development of a 150-megawatt geothermal power plant in New Mexico. This marks Meta’s latest step in exploring cleaner energy alternatives for its growing infrastructure needs.
While the specific location for the plant is yet to be disclosed, Meta clarified that this is not a power purchase agreement. Instead, it is a strategic partnership aimed at advancing geothermal energy development within the region.
The agreement reflects a broader trend among global technology companies, data center operators, and investors showing increasing interest in geothermal power a renewable energy source capable of providing uninterrupted electricity with minimal environmental impact. Unlike solar or wind, geothermal energy is available 24/7, making it particularly attractive for power-intensive operations like data centers.
A Shift Toward Advanced Geothermal Systems
Geothermal power typically involves tapping into underground heat sources to generate electricity. While many companies still rely on open-loop systems, where water is injected and extracted through separate wells, XGS Energy is taking a different approach.
The startup uses a closed-loop system, circulating water within a sealed well. This design minimizes water loss and enhances efficiency. To further optimize heat transfer, XGS employs a proprietary material that surrounds the well casing, pulling in more thermal energy from the surrounding rock layers.
Experts believe advanced geothermal technologies—especially those that access deeper, hotter rock formations—could meet nearly two-thirds of the power demand from new data centers in the U.S. by the end of this decade.
Industry Momentum Grows
This partnership adds to the growing list of geothermal investments by tech giants. Just a day before Meta’s announcement, another geothermal firm, Fervo Energy, secured $206 million in funding for its upcoming Cape Station facility, which is expected to become the world’s largest geothermal power plant.
In recent months, other major tech firms have also entered the geothermal space. One such company signed a deal in April to purchase 10 megawatts of clean energy from a geothermal provider in Taiwan. Another partnership with Fervo is already supplying electricity to data centers in Nevada.
XGS Energy, meanwhile, raised $20 million in Series A funding last year to build a prototype geothermal plant in California, laying the groundwork for future commercial projects like the one in New Mexico.
