Meta has announced a strategic partnership with clean energy startup XGS Energy to advance geothermal power solutions for its expanding artificial intelligence infrastructure. The collaboration focuses on Meta's data center operations in New Mexico, where the company plans to integrate 150 megawatts of carbon-free electricity into the grid.

The agreement represents Meta's latest move to secure sustainable energy sources as AI development dramatically increases power requirements. XGS Energy specializes in next-generation geothermal technologies that can tap into previously inaccessible heat sources, potentially revolutionizing how companies harness the Earth's natural energy.

"AI advancement requires massive, continuous energy support," explained Urvie Parekh, Meta's global energy lead. "Innovations like XGS's geothermal solutions are now ready for large-scale deployment and can play a crucial role in supporting both technological progress and domestic data center growth."

Traditional geothermal plants generate electricity by utilizing natural reservoirs of hot water or steam to drive turbines. However, these conventional methods are geographically limited. Currently, geothermal accounts for just 0.5% of U.S. electricity production. Startups like XGS aim to change this equation through technological breakthroughs.

XGS's approach focuses on extracting heat from dry rock formations using a closed-loop water system that prevents resource depletion—a critical advantage in drought-prone regions like New Mexico. The company's technology could make geothermal viable in locations previously considered unsuitable for such projects.

This marks Meta's second major geothermal investment following last year's 150-megawatt agreement with Sage Earth Systems. While financial details remain confidential, the XGS project will unfold in two phases with completion targeted for 2030—the same year Meta aims to achieve net-zero emissions.

The tech giant faces significant challenges meeting its climate commitments while expanding AI capabilities. Data centers' enormous energy needs have already prompted Meta to explore restarting an old nuclear plant and led a Louisiana utility to propose three new gas-fired plants for another facility.

As tech companies race to develop AI systems, their carbon footprints have grown despite climate pledges. Meta's greenhouse gas emissions have increased since setting its environmental goals, reflecting the industry-wide tension between innovation and sustainability.

Key Points

1. Meta will add 150MW of clean power through its XGS Energy partnership in New Mexico
2. XGS's closed-loop technology addresses water scarcity concerns in drought regions
3. Geothermal currently provides just 0.5% of U.S. electricity but could expand significantly
4. Meta faces challenges balancing AI expansion with its 2030 net-zero emissions target