Meta has partnered with geothermal energy startup XGS Energy to develop a 150-megawatt geothermal power plant in New Mexico.

The agreement, announced on June 12, 2025, aims to advance geothermal energy development in the state but does not constitute a power purchase contract.

XGS Energy has not disclosed the proposed plant’s location, and details about the project are limited.

A spokesperson for Meta confirmed the collaboration but did not provide further specifics.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Geothermal represents the next frontier in tech’s renewable strategy

Meta’s partnership with XGS Energy follows a clear pattern of major tech companies diversifying their renewable energy portfolios beyond just solar and wind.

Google has already secured geothermal agreements with Fervo Energy for its Nevada data centers and with Baseload Capital for operations in Taiwan, positioning geothermal as a strategic component of their energy mix 1.

Tech giants collectively account for over 50% of renewable power purchase agreements in the U.S., demonstrating their market-moving influence in the clean energy landscape 1.

This shift toward geothermal specifically addresses a critical weakness in tech’s previous renewable strategy, the need for baseload power that operates continuously, unlike intermittent solar and wind generation.

The appeal of geothermal for data centers is particularly compelling because it can deliver the reliability of fossil fuels with the zero-emission benefits of renewables, a combination that becomes increasingly valuable as AI development drives unprecedented energy demands.

2️⃣ Geothermal startups are experiencing a funding surge amid technological breakthroughs

The global geothermal market is experiencing remarkable growth, valued at $6.6 billion in 2021 and projected to reach $9.4 billion by 2027, representing a 5.9% annual growth rate 2.

Fervo Energy’s recent $206 million financing round, mentioned in the article, exemplifies a broader trend where at least six geothermal startups have recently closed significant funding rounds despite contraction in other venture capital markets 3.

Enhanced Geothermal Systems (EGS) and closed-loop technologies like XGS Energy’s approach are fundamentally expanding geothermal’s potential beyond traditional geographies, with the Department of Energy estimating geothermal could provide 8.5% of U.S. electricity by 2050 3.

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