Meta is doubling down on geothermal energy, announcing a new agreement with XGS Energy to support cleaner power for its growing data center operations in New Mexico.
XGS Energy specializes in advanced geothermal technologies that expand the potential of this renewable energy source beyond traditional locations. Through this partnership, Meta aims to add 150 megawatts of carbon-free electricity to the local grid that powers its Los Lunas data center.
As Meta ramps up its investments in artificial intelligence, its energy demands are skyrocketing — and so are efforts to find sustainable solutions. “Advances in AI require continued energy to support infrastructure development,” said Urvi Parekh, Meta’s global head of energy. “Next-generation geothermal technologies like those from XGS can play a key role in powering AI and the domestic data centers behind it.”
Traditional geothermal power taps into underground reservoirs of hot water or steam to drive turbines, but its use is limited by geology. Currently, geothermal accounts for only about 0.5% of U.S. electricity generation. Startups like XGS aim to expand access by engineering new ways to harvest heat from deeper and drier rock formations.
XGS stands out by using a closed-loop system that circulates water through a steel casing, minimizing water loss — a major advantage in drought-prone regions like New Mexico. This approach not only protects local water supplies but enhances efficiency and reliability in power production.
This isn’t Meta’s first geothermal investment. In 2023, the company signed a separate 150MW deal with Sage Geosystems, another startup developing similar dry rock geothermal technologies. Tech competitors like Google are also backing geothermal innovation, partnering with companies like Fervo to scale clean energy for data infrastructure.
Meta didn’t disclose the financial terms of the deal with XGS, but the project is set to unfold in two phases, with full operations expected by 2030.
The initiative is part of Meta’s broader goal to reach net zero emissions by 2030. However, meeting that target is increasingly complicated by the energy demands of AI. While Meta recently announced plans to support a nuclear reactor revival for additional clean energy, a proposed expansion in Louisiana would rely on three new natural gas plants — a move that could offset climate progress.
As AI continues to drive Meta’s growth, so too will the need to balance innovation with meaningful climate action.
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