Meta Going Underground: Facebook Parent, XGS Exploring Geothermal in New Mexico
The looming data center energy crisis, if there is one, will require all resources on deck to meet the load demand from artificial intelligence, cloud-based and hyperscale facilities of the future.
Tech giants and power generators are aiming high on the gigawatt problem--from massive upgrades in gas-fired capacity to small nuclear reactor plants--but some may find the solutions much lower, as in the earth’s crust.
Facebook parent Meta is partnering with geothermal companies on somehow harnessing that subterranean heat and energy to help meet the data center needs. The latest deal with Meta Platforms is an agreement with XGS Energy to support development of 150 MW of next-generation geothermal energy in New Mexico, highlighting XGS’ role in delivering reliable electricity to meet growing energy demand.
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. Molten rock activity deep in the earth sub-surface heats fluids which can be utilized through wells to create carbon-free heat and power.
The Meta and XGS geothermal was announced last week by New Mexico Gov. Lujan Grisham. Part of the extremely productive Permian Basin oil and gas play lies beneath the Texas and New Mexico borders.
"New Mexico is not only the second largest oil and gas producer in the U.S., but also one of the nation's leading sources of clean energy," the governor said in a statement. "We've worked hard to ensure New Mexico remains at the forefront of the energy transition."
Meta has a strong data center presence in New Mexico, including several facilities in Los Lunas.
The deal with XGS in New Mexico is only the latest involving Meta. Last year, the tech giant revealed it was working with geothermal developer Sage Geosystems on another 150-MW project with the first phase to be operational by 2027/
“Advances in AI require continued energy to support infrastructure development,” said Urvi Parekh, Global Head of Energy at Meta. “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.”
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XGS Energy’s proprietary geothermal technology, which enables geothermal power production with zero operating water use, will be deployed to the PNM electric grid and support Meta’s data center operations in New Mexico to meet energy demand with baseload power.
XGS’s decoupling of geothermal energy production from location-based constraints such as water availability or permeable or porous rock releases new options for geothermal energy development. XGS’s geographic flexibility helps produce direct electricity from rock resources. The company is expected to increase the total geothermal electricity produced in New Mexico by a factor of ten with this project alone.
Most commercial geothermal activity happens in a relatively limited range including Nevada, Utah and California. The energy activity of geothermal is enormous but geological factors limited the adaptability.
A 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, identified over 160 GW of untapped geothermal potential in the state.
“Project InnerSpace’s report outlines both the scale of New Mexico’s geothermal potential and practical steps to develop it,” Gov. Grisham said. “XGS Energy and Meta’s 150 MW project will create good-paying jobs, strengthen our grid with reliable baseload power, and position our state as a national leader in next-generation renewable energy.”
