Meta and XGS Energy to Develop 150 MW Geothermal Power Plant

Meta Invests in Geothermal Energy Development in New Mexico

Meta has recently joined other tech companies in exploring geothermal energy, announcing a partnership with XGS Energy on Thursday.

The collaboration aims to develop a 150 megawatt geothermal power plant in New Mexico. However, the specific location of the plant remains undisclosed at this time.

Details of the Agreement

While Meta has entered into an agreement “to advance geothermal energy development” within the state, it is not currently a power purchase agreement, according to a company spokesperson who spoke with TechCrunch.

There's been a growing trend among tech firms, data center operators, and investors towards embracing this technology.

The Appeal of Geothermal Energy

Geothermal energy offers the benefit of continuous electricity generation without producing harmful emissions, making it particularly attractive to large-scale data centers.

According to the Rhodium Group, advanced geothermal techniques, involving deeper drilling to access hotter rocks, have the potential to meet almost two-thirds of the anticipated new data center electricity demand in the U.S. by the year 2030.

Innovative Approaches to Geothermal Technology

Many geothermal startups are utilizing open-loop systems, which involve injecting water down one well and extracting it from another after it flows through rock fractures.

However, these systems can experience some water loss over time.

XGS Energy employs a different approach, utilizing a closed-loop system within a sealed well to minimize water loss.

Furthermore, they inject a specialized mud around the well casing to enhance heat transfer from the surrounding rocks to the loop.

Recent Momentum in the Geothermal Sector

The Meta and XGS Energy partnership represents the latest in a series of deals secured by geothermal startups.

Just recently, Fervo Energy obtained $206 million in funding to further develop its Cape Station power plant, which is projected to become the world’s largest geothermal facility.

This progress has sparked speculation about a potential public offering for Fervo Energy as early as next year.

Other Tech Company Investments

In April, Google announced a 10 megawatt geothermal purchase from Baseload Capital to power its operations in Taiwan.

Google also has an existing agreement with Fervo to supply electricity to its data centers in Nevada.

XGS Energy previously secured $20 million in Series A funding last year to support the development of a commercial-scale prototype in California.