Dive Brief:
- Meta announced a deal with geothermal energy producer XGS Energy Thursday that will provide the tech and social media giant with carbon-free power to support its New Mexico data center operations
- In exchange, Meta will support XGS’s development of 150 megawatts of next-generation geothermal energy production capacity in the state, according to the June 12 release. New Mexico Gov. Michelle Lujan Grisham reportedly said the new plant will result in a $1 billion private sector investment, in addition to creating 3,000 construction jobs and 100 plant operation jobs.
- The deal adds to the growing corporate demand for geothermal energy, which provides carbon-free power generation without weather dependence. Meta previously signed its first geothermal agreement with Sage Geosystems last year for power generation east of the Rocky Mountains.
Dive Insight:
XGS’s new geothermal plant will be built in two phases and is unique, as the company uses proprietary geothermal power production technology that works with zero operational water use, according to the release. The project’s completion will include an initial smaller phase of construction and a later, larger phase, with both expected to be completed and operational by 2030, the companies said.
On its own, this XGS project is expected to increase the total geothermal production in New Mexico by “a factor of 10,” according to the release. Meta Global Head of Energy Urvi Parekh said the social media giant is “excited” to work with XGS “to unlock a new category of energy supply” for its New Mexico operations.
“Advances in AI require continued energy to support infrastructure development,” Parekh said in Thursday's 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.”
For Meta, it is the company’s second foray into the geothermal market, following the deal with Sage Geosystems announced August 2024. That agreement will also lead to the development of 150 MW of next-generation geothermal power for the social media and tech conglomerate’s data center needs due to the uptick of artificial intelligence adoption.
XGS CEO Josh Prueher said the company is “pleased to support Meta’s ambitious AI objectives and accelerate access to new round-the-clock power supplies,” and called New Mexico “a growing hub for data center development. XGS’s technology has the ability to decouple geothermal energy production from typical location restraints like the availability of water or permeable or porous rocks. The company is also coming off a $13 million funding round in March.
Lujan Grisham said in a press release that the collaboration between Meta and XGS will strengthen the state’s grid and position it as a “national leader in next-generation renewable energy.”
“We’ve worked hard to ensure New Mexico remains at the forefront of the energy transition, and geothermal energy represents a promising new frontier,” Lujan Grisham said.
Geothermal energy has increasingly become an option for corporate clean energy buyers, resulting in both startup funding and development deals for the industry.
In March, Mastercard announced it would use geothermal energy to replace its natural gas-powered hearing and cooling systems at its Purchase, New York headquarters. That heating and cooling system contributes to Mastercard’s headquarters consuming more natural gas than any of the global payments company’s other offices.
Earlier this year, Houston-based geothermal startup Fervo Energy secured $255 million new funding in debt and equity financing, which it said will help the company deploy the capacity necessary to meet a “skyrocketing demand for clean, firm power.”
