Meta Platforms and XGS Energy have announced a groundbreaking agreement to develop 150 MW of next-generation geothermal power in New Mexico. This project aims to supply clean, steady, and water-free electricity to Meta’s data center operations, while also feeding power into the PNM electric grid.
Urvi Parekh, Global Head of Energy at Meta, said,
“Advances in AI require continued energy to support infrastructure development. 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. We’re excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico.”
XGS Breaks Geothermal Barriers with Modular, Water-Free Technology
Josh Prueher, Chief Executive Officer at XGS Energy, said,
“We’re pleased to support Meta’s ambitious AI objectives and accelerate access to new round-the-clock power supplies. More broadly, the state of New Mexico is a growing hub for data center development. We are eager to feed clean, water-independent geothermal power into the New Mexico market at a scale uniquely possible with XGS technology.”
Traditionally, geothermal plants require water and specific geologic conditions—like porous or permeable rock formations—to operate. XGS flips that model.
Instead of using water to generate steam, XGS uses a closed-loop system to move heat from deep underground to the surface. It avoids the water-intensive processes of traditional geothermal plants. This not only conserves local water supplies, but also ensures long-term energy reliability, regardless of weather or surface conditions.
Key features of the system include:
- Closed-loop, water-free design: Water is recycled in a sealed system with zero loss.
- Pipe-in-pipe heat exchanger: Hot rock heats a working fluid inside a dual-pipe system to produce electricity.
- Advanced materials: Thermally conductive materials improve heat transfer and enhance system economics.
- Any geology, any location: It works in dry, impermeable rock formations that conventional geothermal can’t tap.
XGS Energy’s proprietary geothermal technology
Why New Mexico—and Why It Matters
New Mexico currently has just one operational geothermal power plant. Yet it sits atop some of the country’s richest hot rock resources. The XGS-Meta partnership leverages this untapped potential, bringing scalable, clean baseload energy to the region.
The press release revealed that the state has a vast untapped potential, estimating more than 160 gigawatts of geothermal energy waiting to be developed. This data was published in the new report, “The Future of Geothermal in New Mexico” by Project InnerSpace, New Mexico Tech, and the New Mexico Bureau of Geology and Mineral Resources. This shows that geothermal energy is gaining serious momentum in New Mexico.
Furthermore, XGS’s system is uniquely suited to arid states like New Mexico, where water is scarce and conventional geothermal options are limited.
The state’s support for renewables and its pressing need for water conservation made it an ideal choice. State leaders have praised the deal for aligning environmental goals with economic opportunity, reinforcing New Mexico’s leadership in clean energy.
This one project will boost New Mexico’s geothermal output by 10x, powering Meta’s data center while helping stabilize the regional grid with zero-carbon baseload electricity.
PNM President and CEO Don Tarry said,
“The two-phased 150 MW agreement will include an initial smaller phase and a second, larger phase, both projected to be operational by 2030. Both phases will be sited in New Mexico on the PNM electric grid. We’re proud to support this innovative, carbon-free project from Meta and XGS Energy. This project is a meaningful step toward meeting New Mexico’s clean energy goals and demonstrates the power of advanced technology to shape our energy future.”
Environmental Gains Beyond Emissions
The benefits of XGS’s New Mexico project go beyond carbon reduction:
- Zero water use: Conserves vital resources in drought-prone regions.
- Baseload stability: Delivers steady power to support grid resilience.
- Decentralized clean energy: Proves that next-gen geothermal can scale beyond traditional hotspots.
This project sets a new standard for sustainable infrastructure, offering real, measurable benefits instead of theoretical potential.
Economic Impact: Jobs and a Clean Tech Boost for New Mexico
The project is expected to create roughly 3,000 construction jobs and 100 permanent roles. Beyond employment, the plant could attract more tech and clean energy companies to the region, positioning New Mexico as a rising hub for climate-tech development.
Local suppliers and businesses will also benefit from increased activity and infrastructure investment, unlocking long-term value for the regional economy.
Why Meta’s Betting Big on Geothermal to Power Its Data Centers
Meta is expanding its renewable energy strategy by backing next-generation geothermal power. As energy demand grows from AI and cloud computing, the tech giant is under pressure to find reliable, carbon-free solutions. Its latest partnership with XGS Energy highlights how big tech is driving clean innovation.
Investing in Clean Power to Slash Emissions
For over ten years, Meta has been adding renewable energy to the grids near its data centers. It’s one of the world’s biggest corporate buyers of clean energy, with over 11,700 megawatts (MW) of contracted wind and solar. As of 2023, more than 6,700 MW are already online, helping Meta match 100% of its global electricity use with renewables.
In the same year, Meta cut 5.1 million tons of CO₂ from its operations. It also used renewable energy credits to reduce 1.4 million tons of emissions from its wider value chain, including customers using its devices and employees working from home. Since 2021, its renewable energy purchases have helped avoid 16.4 million tons of CO₂ emissions.
This new geothermal deal shows Meta’s growing interest in dependable, clean power. Unlike wind or solar, geothermal runs 24/7. It’s a strong fit for data centers that need constant electricity.
Geothermal’s Growing Role in the U.S. Energy Mix
The U.S. Department of Energy (DOE) sees a massive opportunity for geothermal. According to its projections, the nation may need up to 900 GW of additional clean firm capacity by 2050. Next-gen geothermal could supply 90 GW and potentially as much as 300 GW if paired with storage and other innovations.
The DOE notes that modern geothermal technologies, rooted in oil and gas industry techniques, can now access heat from hot rock nearly anywhere in the country. As drilling costs drop and system reliability rises, geothermal can compete head-on with solar and wind.
Moving on, the International Energy Agency (IEA) reports that geothermal energy is attracting investment opportunities from governments, utilities, big techs, and oil and gas firms.
If costs for advanced geothermal technologies continue to fall, global investments in the sector could total $1 trillion by 2035 and rise to $2.5 trillion by 2050.
If successful, the New Mexico project could prove that zero-water geothermal is both practical and essential for a net-zero future. Meta’s move may spark wider adoption, showing how corporate leadership can accelerate next-gen clean energy.
