Meta Teams Up with XGS Energy to Build 150 MW Geothermal Power Plant

Meta is venturing into geothermal energy by partnering with XGS Energy to develop a 150 megawatt geothermal power plant in New Mexico. This initiative marks Meta’s commitment to sustainable energy solutions for its growing data center needs.

While specifics of the deal remain undisclosed, a Meta spokesperson confirmed to TechCrunch that the agreement aims “to advance geothermal energy development” in the state. However, it is not yet a contract to purchase power. XGS Energy has also not revealed the exact location for the power plant.

The increasing interest in geothermal energy among tech companies, data center developers, and investors is driven by its capacity to generate continuous, emission-free electricity. This is particularly appealing to hyperscalers seeking reliable and sustainable power sources.

According to the Rhodium Group, advanced geothermal technologies, which involve drilling deeper to access hotter rocks, could potentially supply nearly two-thirds of the new data center electricity demand in the U.S. by 2030. This makes geothermal a promising alternative to traditional energy sources.

Unlike many geothermal startups that use open loop designs, which can result in water loss, XGS Energy employs a closed loop system within a sealed well to minimize water usage. Additionally, they use a proprietary mud around the well casing to enhance heat transfer from the rocks to the loop.

This partnership follows other significant developments in the geothermal sector. Fervo Energy recently secured $206 million to advance its Cape Station power plant, which is set to become the world’s largest geothermal facility. Google has also invested in geothermal energy, including a deal with Baseload Capital to power its Taiwan operations and another with Fervo for its Nevada data centers.

XGS Energy, backed by a $20 million Series A funding round last year, is focused on developing a commercial-scale prototype in California, further contributing to the expansion of geothermal energy solutions.

The collaboration between Meta and XGS Energy highlights the growing importance of geothermal energy in meeting the power demands of the tech industry while reducing environmental impact.