Meta has joined the growing list of tech companies investing in renewable energy, announcing a partnership with geothermal startup XGS Energy to develop a 150-megawatt geothermal power plant in New Mexico.
The agreement, revealed on Thursday through a press release, marks a significant step forward in Meta’s push toward sustainable energy sources.
However, specifics of the deal remain limited. Meta confirmed that this is not a purchase agreement for power but an initial partnership “to advance geothermal energy development” in the state, according to a Meta spokesperson speaking with TechCrunch.
The move highlights the increasing interest in geothermal energy from major tech companies, particularly those operating data centres that demand vast amounts of electricity.
Meta and XGS Energy are partnering to bring 150 MW of next-generation geothermal energy to New Mexico, in a major clean power initiative to support Meta’s growing AI infrastructure needs. Unlike traditional geothermal, XGS’s technology operates with zero water use and does not… pic.twitter.com/KHVoh6I9cJ
— NextMetropolis (@NextMetropolis) June 13, 2025
Geothermal energy’s ability to generate continuous, emission-free power has made it an attractive option for hyperscalers like Meta.
XGS Energy, which has yet to disclose the exact location for the plant, uses an innovative closed-loop system that minimises water loss.
Unlike traditional geothermal systems, which inject water into rock formations and extract it through another well, XGS’s method seals the loop, keeping water inside the system.
Additionally, XGS uses a proprietary mud around the well casing to increase heat transfer from the surrounding rocks to the water, improving efficiency.
Geothermal energy’s potential to meet the increasing energy demands of the data sector is considerable.
According to a report from the Rhodium Group, advanced geothermal systems could provide nearly two-thirds of the energy required by new data centres in the United States by 2030.
XGS Energy’s partnership with Meta is part of a broader trend of growth in the geothermal sector. The company recently raised $20 million in a Series A funding round to further its work on a commercial-scale geothermal prototype in California.
As tech companies continue to seek sustainable energy solutions, the role of geothermal power in meeting growing demand will likely continue to expand, with XGS Energy and Meta at the forefront of this shift.
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