Meta Expands Geothermal Push with XGS Energy Deal to Power AI Growth

Meta is ramping up its renewable energy strategy with a new partnership aimed at meeting the ballooning electricity demands of artificial intelligence. The tech giant has inked a deal with XGS Energy, a next-generation geothermal startup, to supply 150 megawatts of carbon-free electricity to the power grid supporting Meta’s Los Lunas data center in New Mexico.

The agreement marks another significant step in Meta’s broader clean energy journey, especially as AI technologies drive unprecedented power consumption across global data centers. Geothermal energy, once limited by geography, is gaining new momentum thanks to emerging technologies like those developed by XGS.

“Advances in AI require continued energy to support infrastructure development,” said Urvi Parekh, Meta’s global head of energy, in a press release. “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.”

Traditional geothermal plants draw heat from naturally occurring underground steam or hot water reservoirs to generate electricity. However, such sources are geographically constrained, leaving geothermal with just a sliver—about 0.5%—of the U.S. energy mix. XGS and other innovators aim to break through those limits with engineered solutions.

XGS Energy’s method stands out by using a closed-loop system. Instead of relying on natural cracks and underground water sources, their technology circulates water within a steel casing, minimising the risk of leakage and conserving water—especially vital in arid regions like New Mexico.

This initiative with XGS Energy will roll out in two phases, with the ultimate goal of becoming operational by 2030. Although Meta has not disclosed the financial details, the investment reinforces its commitment to its 2020 pledge of reaching net-zero emissions by the decade’s end.

Yet, the road to net-zero is complex. AI infrastructure is driving up power demands sharply, and without a strong push for clean energy solutions, tech giants like Meta risk veering off course from their climate goals. The company has been proactive, recently announcing efforts to bring an old nuclear plant back online and exploring other geothermal deals, such as a 150MW partnership with Sage Geosystems. Sage’s technology taps into hot, dry rock formations by drilling and injecting water to simulate natural geothermal reservoirs.

Google is also exploring this clean energy frontier, backing similar efforts through a collaboration with Fervo, another geothermal startup innovating in this space.

Despite these advancements, Meta’s carbon emissions have grown since its climate commitments were announced—largely driven by AI development and global data center expansion. In Louisiana, plans for three new gas-powered plants to support a new Meta data facility have raised questions about the balance between growth and sustainability.

Still, projects like the XGS Energy deal offer a glimpse into a possible future where AI and environmental stewardship go hand in hand. By investing in scalable geothermal solutions, Meta is not just meeting its energy needs—it’s helping to shape the next chapter in clean energy innovation.