Meta partners with XGS Energy to build a 150 MW geothermal plant
Meta has joined the growing wave of tech giants investing in geothermal energy, announcing a partnership with XGS Energy to advance the development of a 150-megawatt geothermal power plant in New Mexico. While the specifics of the plant's location and financial terms remain under wraps, the move reflects Meta's broader push toward sustainable energy sources to support its expanding digital infrastructure.
Powering the Future—Sustainably
Unlike traditional power sources, geothermal energy provides clean, round-the-clock electricity. This makes it especially attractive to companies operating energy-intensive data centers—like Meta, Google, and others—who are under increasing pressure to decarbonize their operations.
“While this isn’t a power purchase agreement, it is a significant step toward scaling geothermal energy,” a Meta spokesperson told TechCrunch. The partnership is aimed at supporting the exploration and advancement of geothermal technology in the region, not just securing energy supply.
A New Spin on Geothermal
XGS Energy stands out in the geothermal space thanks to its closed-loop system. Unlike conventional "open-loop" designs, which pump water into the ground and recover it after it heats up (sometimes losing water in the process), XGS uses a sealed loop that prevents water loss and improves heat transfer. The company also employs a proprietary heat-transfer mud that surrounds the well casing to draw even more thermal energy from underground rock.
This innovative approach aims to increase efficiency and reduce environmental impact—two goals aligned closely with Meta’s climate and sustainability commitments.
The Geothermal Gold Rush
Meta's announcement comes as the geothermal industry sees a surge in interest and investment. Just a day before the Meta-XGS announcement, Fervo Energy secured $206 million in funding for what’s set to become the world’s largest geothermal plant, Cape Station. Google, too, has been making moves—purchasing 10 megawatts of geothermal energy from Baseload Capital for its Taiwan operations and working with Fervo to power data centers in Nevada.
A report by the Rhodium Group suggests that advanced geothermal could meet up to two-thirds of new U.S. data center demand by 2030. With artificial intelligence and cloud computing driving massive increases in power consumption, geothermal energy could play a critical role in making that growth more sustainable.
What’s Next?
While the Meta-XGS deal doesn’t yet include a direct energy purchase, it positions both companies at the forefront of a potential clean energy transformation. XGS, which raised $20 million in Series A funding last year to scale up its prototype operations in California, now has another major tech player backing its growth.
As geothermal technology matures and gains support from Silicon Valley, it may soon move from niche promise to mainstream power—just in time to meet the soaring energy needs of an AI-driven world.
