Revolutionizing Geothermal Energy: Quaise Energy's Superhot Technology to Power AI Data Centers

Quaise Energy is developing superhot geothermal technology that drills deeper to reach rocks at 500°C, producing 5-10 times more power per well. This could be crucial for AI and data centers requiring massive amounts of constant power. Quaise has partnered with Nabors Industries and received $103 million in funding, with plans to build the world's first superhot geothermal power plant by 2028. AI stocks like Amazon and Microsoft are driving energy demand, with Amazon's average price target implying 12% upside potential.

Geothermal energy, long used for heating systems, is getting a significant upgrade with the advent of superhot geothermal technology. Quaise Energy, a Massachusetts-based startup, is pioneering this method by drilling deep to access extremely hot rocks, capable of producing five to ten times more power per well compared to traditional geothermal systems. The company's technology involves an electromagnetic beam that vaporizes rock, allowing it to reach depths of up to 12 miles below the Earth's surface, where temperatures can soar to over 500°C (930°F) [1].

Carlos Araque, CEO of Quaise, emphasizes the need to drill hotter and deeper to access the resource at a scale that matters. "To access the resource at a scale that actually matters, we have to drill hotter first and deeper second," he said. This technology was invented at the Massachusetts Institute of Technology in 2007 and is now being scaled for commercial use [1].

Quaise's recent partnership with Nabors Industries, an oil and gas company, has demonstrated the potential of superhot geothermal energy. While the drilling itself is costlier, the energy output is significantly higher, making it a cost-effective solution in the long run. The company plans to build the world's first superhot geothermal power plant near Bend, Oregon, by 2028 [1].

The demand for constant, high-density power is particularly acute in the AI and data center sectors. Tech giants like Amazon (AMZN) and Microsoft (MSFT) are driving this demand, with Amazon's average price target implying a 12% upside potential [3]. Quaise has raised $103 million in funding, with strong support from the U.S. Department of Energy, which sees this technology as a potential solution for powering AI growth and reducing electricity costs [1].

The Department of Energy Secretary Chris Wright has expressed strong support for geothermal energy, noting its potential to help with the growth of AI and manufacturing and lower electricity prices. President Trump's National Energy Emergency executive order also included geothermal energy as part of its strategy [1].

While superhot geothermal energy holds promise, it faces challenges such as higher drilling costs and potential public opposition due to safety concerns. However, the potential benefits, including a significant reduction in electricity costs and the repurposing of labor from the oil and gas industry, make it a compelling option for the future of energy [1].

References:

[1] https://www.cnbc.com/2025/07/30/superhot-geothermal-energy-could-unearth-power-needed-for-ai-era-.html
[2] https://theoutpost.ai/news-story/big-tech-s-nuclear-ambitions-powering-ai-with-aging-reactors-18440/
[3] https://www.tipranks.com/news/is-superhot-geothermal-the-answer-to-powering-ai-data-centers