Tech Firms Shift to Geothermal Power for AI Data Centers

Tech firms are increasingly turning to geothermal energy to power their data centers, driven by the surging demand for artificial intelligence (AI) services. This shift is part of a broader trend among technology companies to adopt cleaner and more sustainable energy sources. Geothermal power, which harnesses the Earth's heat to generate electricity, offers a zero-carbon emission solution that aligns with the environmental goals of these firms.

Meta, one of the leading tech companies, has recently signed a deal for advanced geothermal power to support its AI expansion. This move is part of a larger strategy to secure massive amounts of electricity for the data centers needed to develop AI technologies. The project is expected to provide a reliable and clean energy source, which is crucial for the continuous operation of AI-optimized data centers. The partnership with XGS Energy will be rolled out in phases and is expected to be up and running by the end of the decade. The geothermal electricity generated will go into the electric grid and help power Meta’s operations in New Mexico.

The demand for AI is projected to significantly increase electricity consumption in data centers. This surge in demand necessitates the adoption of sustainable energy solutions to meet the growing power requirements without compromising environmental standards. Geothermal energy, with its consistent and reliable power output, is well-suited to meet these demands. Unlike traditional geothermal power generation, advanced geothermal power generation is not dependent on natural water sources, making it a more versatile option for tech companies.

The shift towards geothermal energy is not limited to Meta. Other tech giants, including Google, are also exploring geothermal power as a viable option for their data centers. Google announced last year that it planned to power its data centers with advanced geothermal energy created by Fervo Energy. The deal was first sent to state utility regulators for approval. According to a statement from Google, the deal would boost the total of carbon-free geothermal electricity sent into the local power grid for the company’s consumption to 115 megawatts from 3.5 megawatts within roughly six years. The collaboration took Google closer to its goal of running entirely on clean energy by 2030. The company said it will invest at least $4 billion to construct or expand data centers in Indiana, Missouri, and Virginia.

The evolving AI workloads are reshaping the development of data centers, with significant implications for the power grid. The adoption of geothermal energy is seen as a key solution to address these challenges and ensure the sustainable growth of the tech industry. The state of New Mexico, known for its geothermal potential, is at the forefront of this energy transition. The region's unique geothermal resources make it an ideal location for developing geothermal technology. New Mexico holds 160,000 megawatts of unused geothermal energy potential. Although 150 megawatts is a small part of the many gigawatts that tech companies need for AI, it still accounts for about 4% of all geothermal energy produced in the US.

The adoption of geothermal energy by tech firms is a strategic move to address the growing demand for AI services while maintaining environmental sustainability. By investing in clean energy sources, these companies are not only reducing their carbon footprint but also ensuring a reliable power supply for their data centers. This trend is expected to continue as more tech firms recognize the benefits of geothermal energy and its potential to support the future of AI development.