Meta Partners with XGS Energy to Develop a 150 MW Geothermal Power Plant
Meta has joined the growing number of technology companies embracing geothermal energy, announcing a collaboration with startup XGS Energy to develop a 150 megawatt geothermal power facility in New Mexico.
While the exact location of the planned power plant remains undisclosed, and Meta clarifies this is not yet a power purchase agreement, the partnership aims to advance geothermal energy development within the state, according to a Meta spokesperson.
Growing Interest in Geothermal Energy Among Tech and Data Center Firms
Geothermal energy offers continuous electricity generation without greenhouse gas emissions, making it increasingly attractive to hyperscale data centers and tech companies seeking sustainable power sources.
Advanced geothermal methods, which drill deeper to reach hotter rock formations, could supply nearly two-thirds of the new electricity demand from U.S. data centers by 2030, according to research by the Rhodium Group.
XGS Energy’s Innovative Closed-Loop Technology
Unlike many geothermal startups that utilize open-loop systems—injecting water into one well and extracting it from another, resulting in some water loss—XGS Energy employs a closed-loop system where water circulates within a sealed well. This approach minimizes water loss.
The company also uses a proprietary mud around the well casing to enhance heat transfer from surrounding rock to the circulating water, improving energy extraction efficiency.
Momentum in the Geothermal Startup Space
This collaboration between Meta and XGS Energy adds to a growing list of partnerships and investments in geothermal energy startups. Recently, Fervo Energy secured $206 million to expand its Cape Station geothermal plant, which is set to be the world's largest. Speculation suggests Fervo may go public soon.
Google has also made moves in this area, purchasing geothermal power in Taiwan and establishing deals with Fervo Energy to power its Nevada data centers.
XGS Energy raised $20 million during its Series A funding last year to develop a commercial prototype in California.
DeepFounder AI Analysis
Why it matters
The increasing interest from major tech firms such as Meta highlights a significant pivot towards sustainable, reliable energy sources in the tech ecosystem. Geothermal energy offers a base-load power solution critical for data centers and technology infrastructure that require consistent power without interruptions or emissions, marking a shift in how energy-intensive industries address environmental challenges and operational efficiency.
Risks & opportunities
The primary opportunity lies in the potential to scale geothermal energy to meet rising electricity demands sustainably, positioning startups that innovate in advanced geothermal tech or service deployment well for growth. However, risks include technological challenges related to drilling depth, securing sites, and environmental concerns around water usage and land impact. Market competition and the pace of adoption are also factors to watch.
Startup idea or application
A promising startup concept could focus on developing predictive analytics and optimization software tailored for closed-loop geothermal systems, improving heat extraction efficiency and operational uptime. Such a platform could serve geothermal startups and operators by integrating real-time data with geological and mechanical inputs to dynamically manage energy output and maintenance schedules.
Geothermal Energy Sustainable Tech Green Energy Data Centers Climate Tech XGS Energy
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