Meta, the latest high-tech company to warm geothermal energy, announced its contract with startup XGS Energy on Thursday to develop a 150-megawatt geothermal power plant in New Mexico.
XGS Energy has not yet said where to build the power plant. Meta has yet to disclose details regarding the transaction other than it is a “accord to promote geothermal energy development” rather than a contract to purchase electricity.
Recently, high-tech companies, data center developers and investors have been welcoming the technology. Geothermal can generate electricity around 24 hours a day without generating emissions. This is an attractive combination to hyperscalers.
According to the Rhodium Group, advanced geothermal drilling deeper to access hotter rocks to meet almost two-thirds of the demand for new data centers by 2030 could generate enough electricity in the US.
Many geothermal startups pursue open loop designs. There, one well is injected with water, passing through a crack in the rock, then extracted from another well. Over time, some of the water will be lost to the ground.
XGS energy, on the other hand, sends water through a closed loop in a sealed well, minimizing water loss. It also injects its own mud into the outside of the well casing to allow more heat transfer from the rock to the loop.
The XGS Energy and Meta partnership is the latest in a series of deals acquired by geothermal startups.
On Wednesday, Fervo Energy secured $206 million in funding to continue work at the Cape Station power plant. The company’s momentum has fueled speculation that it could be made public as soon as next year.
In April, Google said it was purchasing 10 megawatts of geothermal heat from Baseload Capital to promote its operations in Taiwan. The search giant has also signed a contract with Fervo to supply electricity to the Nevada data center.
XGS Energy raised a $20 million Series A last year to help develop commercially-scale prototypes in California.