Meta strikes geothermal deal in New Mexico to tap earth’s core for AI power

ARCA News Desk

| June 16, 2025
Source: Outlever.com
TL;DR
  • Meta partners with XGS Energy on a 150-megawatt geothermal project in New Mexico to power its AI data centers with clean energy.

  • The project uses XGS Energy’s closed-loop system, enhancing heat transfer without natural water reservoirs, and is expected online by 2030.

  • New Mexico’s untapped geothermal potential positions it as a leader in next-generation renewable energy, supporting data center growth.

  • This move reflects Meta’s strategy to diversify its clean energy sources, similar to efforts by other tech giants like Google.

Meta is partnering with XGS Energy on a 150-megawatt geothermal project in New Mexico, aiming to secure a steady stream of clean energy for its power-hungry AI data centers. This move seeks to leverage the state’s vast underground heat resources to provide continuous, carbon-free electricity.

Baseload for bots: The deal signifies a broader push by tech giants to lock down substantial energy supplies as AI development explodes. Geothermal energy offers reliable, around-the-clock power without emissions, a critical factor for companies like Meta. “With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player,” said Urvi Parekh, Meta’s Global Head of Energy.

Rock-solid tech: XGS Energy’s approach uses a proprietary closed-loop system that doesn’t need natural water reservoirs and injects a special mud to enhance heat transfer. The 150 MW project will be built in two stages, expected online by 2030, and will feed electricity into the PNM grid, showcasing a water-wise solution for a state rich in hot rock resources.

Land of enchantment’s energy: New Mexico, despite having only one current geothermal plant, sits on over 160 gigawatts of untapped potential, according to a recent report. XGS CEO Josh Prueher noted the state is “a growing hub for data center development,” and Governor Michelle Lujan Grisham said the project will position New Mexico “as a national leader in next-generation renewable energy.”

Strategic heat: This agreement shows Meta’s ongoing commitment to diversifying its clean energy portfolio as its AI operations expand, mirroring efforts by other major tech players like Google, which is also pursuing geothermal solutions for its data centers. Geothermal energy is gaining traction elsewhere, with Fervo Energy recently securing $206 million for what could be the world’s largest geothermal plant. It’s not just tech giants either; Mastercard is tapping geothermal to heat and cool its New York headquarters. For a deeper dive into New Mexico’s potential, the full “Future of Geothermal in New Mexico” report is also available.

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