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Meta has entered into an agreement with XGS Energy to develop “next-generation geothermal energy” projects in New Mexico. The plan is for these projects to connect directly into the electrical grid that Meta’s data centers draw from, feeding the growing energy needs of the company’s AI development.
Both companies claim the new deal will add 150-megawatts of carbon-free energy to the grid “with zero operating water use.” New Mexico is apparently uniquely suited for geothermal energy production because the state has “some of the best hot rock resources in the country,” according to the deal announcement. XGS Energy’s approach will allow “these hot, but typically dry, rock resources” to be used to produce electricity without having to worry about water accessibility.
The agreement is split into two phases, an initial smaller one and a second larger one, both of which are “projected to be operational by 2030.” Meta has previously explored geothermal energy through a partnership with Sage Geosystems, and like its past deals — including Meta’s recent 20-year agreement to use a nuclear power plant in Illinois — the company is focused on finding more sources of energy for its AI data centers.
“Advances in AI require continued energy to support infrastructure development,” Urvi Parekh, Meta’s Global Head of Energy, shared in the deal announcement. “With next-generation geothermal technologies like XGS ready for scale, geothermal can be a major player in supporting the advancement of technologies like AI as well as domestic data center development.”
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