Meta Accelerates AI Expansion with Pioneering Geothermal Energy Deal in New Mexico

Meta Partners with XGS Energy for Advanced Geothermal Power

Meta is making significant strides toward sustainable technology infrastructure by signing an innovative geothermal energy agreement with XGS Energy in New Mexico. This strategic partnership aims to bolster Meta's data centers—which form the backbone of its artificial intelligence (AI) operations—with an influx of clean, carbon-free electricity.

The Demand for Clean Power in the Era of AI

The explosive growth of AI has triggered a tremendous surge in energy demand, particularly from data centers powering next-generation digital tools and services. As AI algorithms and applications become more complex, they require vast amounts of computing resources—putting immense pressure on energy grids worldwide. Meta, recognizing the critical need to align its digital ambitions with environmental sustainability, is investing in innovative clean energy solutions to ensure its AI development remains both scalable and responsible.

Next-Generation Geothermal Technology Explained

Traditional geothermal power relies on tapping into naturally occurring reservoirs of steam or hot water to generate electricity. However, this approach is geographically constrained, with less than 1% of US energy currently derived from geothermal sources. XGS Energy, Meta’s newest partner, is pioneering methods that unlock geothermal power from previously inaccessible dry rock resources. Using a cutting-edge closed-loop system, XGS circulates water through steel-encased wells, extracting heat from underground rocks while conserving water—a crucial advantage in arid regions like New Mexico.

Key Features and Advantages of Meta's New Geothermal Deal

• 150 Megawatts of Carbon-Free Power: The agreement adds substantial renewable energy—enough to energize Meta’s Los Lunas data center, directly supporting AI innovation. • Water Conservation: XGS’s closed-loop system prevents water loss, a vital advantage in drought-prone states. • Scalable Innovation: The next-generation geothermal technology can be deployed in regions previously off-limits to geothermal energy, drastically expanding its market potential.

Comparison to Other Renewable Initiatives

Meta isn’t new to the geothermal energy landscape. In 2023, it entered a similar agreement with Sage Geosystems, another startup leveraging hot, dry rock formations to create artificial geothermal reservoirs. Google, a leading rival in AI and cloud computing, is also investing in advanced geothermal via its collaboration with Fervo Energy. However, XGS Energy distinguishes itself with its focus on water conservation—making it especially relevant for scaling sustainable data centers in water-scarce locations.

Use Cases and Market Relevance

The electricity provided by these geothermal projects will be used to power Meta’s rapidly growing hyperscale data centers, enabling the flawless operation of AI algorithms, large language models, and real-time digital services. By championing innovative geothermal solutions, Meta is not only meeting its vast internal energy needs but also catalyzing the broader adoption of geothermal power within the tech industry.

Roadmap and Future Impact

The XGS partnership will roll out in a phased approach, targeting full operational status by 2030. This project is central to Meta’s commitment to reach net zero emissions by the decade’s end—a pledge increasingly challenged by the ballooning energy requirements of AI. Alongside geothermal, Meta is diversifying its clean energy mix, including investments in nuclear and solar power, although new fossil-fuel plants in some regions remain a concern.

With this landmark deal, Meta demonstrates a future-forward approach to align explosive AI growth with urgent climate goals—providing a blueprint for how technology giants can sustainably power the digital age.