Meta is deepening its commitment to clean energy with a newly announced partnership with XGS Energy, a geothermal power developer. The deal, revealed on June 12, outlines Meta’s support in building 150 megawatts of next-generation geothermal energy capacity in New Mexico. This move is aimed at powering Meta’s data center operations in the state with carbon-free electricity.

The initiative reflects a broader shift toward geothermal energy as a dependable and renewable alternative that isn’t reliant on weather conditions like solar or wind. It also marks Meta’s second foray into geothermal energy procurement, following a similar agreement with Sage Geosystems last year for facilities east of the Rocky Mountains.

XGS Energy’s project, which will unfold in two phases, features proprietary geothermal technology that does not require any operational water—a significant environmental advantage. Both construction phases are expected to be completed and delivering power by 2030, according to the company’s announcement.

The impact of this project could be transformative for New Mexico’s energy profile. “On its own, this XGS project is expected to increase the total geothermal production in New Mexico by a factor of 10,” the release stated.

The agreement has drawn strong praise from state leaders. New Mexico Governor Michelle Lujan Grisham welcomed the investment, stating it would bring substantial economic and employment benefits. The governor noted that the plant is projected to generate $1 billion in private investment, along with 3,000 construction jobs and 100 permanent operational roles.

“We’ve worked hard to ensure New Mexico remains at the forefront of the energy transition, and geothermal energy represents a promising new frontier,” said Lujan Grisham. She added that the collaboration between Meta and XGS “will strengthen the state’s grid and position it as a national leader in next-generation renewable energy.”

Meta emphasized the importance of such partnerships in enabling the energy demands of emerging technologies. “Advances in AI require continued energy to support infrastructure development,” said Urvi Parekh, Meta’s global head of energy. “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.”

She added, “We are excited to work with XGS to unlock a new category of energy supply for our New Mexico operations.”

XGS CEO Josh Prueher echoed that sentiment, describing the partnership as a milestone in bringing scalable, location-flexible geothermal energy to the market. “We are pleased to support Meta’s ambitious AI objectives and accelerate access to new round-the-clock power supplies,” said Prueher. “New Mexico is a growing hub for data center development.”

He also highlighted the technological flexibility of XGS’s systems, which can operate without access to permeable rock formations or water, long considered barriers to geothermal development. The company recently closed a $13 million funding round in March, signaling rising investor confidence in its approach.

Geothermal power is gaining traction among large corporations seeking to cut carbon emissions and reduce reliance on volatile energy markets. Mastercard recently announced it would replace the gas-powered heating and cooling system at its headquarters in Purchase, New York, with geothermal energy. That location is currently the company’s largest consumer of natural gas.

Similarly, Fervo Energy, another geothermal startup based in Houston, secured $255 million in new financing earlier this year. The company aims to meet surging demand for “clean, firm power,” which it describes as critical for future energy security.

Meta’s latest deal with XGS highlights the growing importance of geothermal energy in the corporate renewable energy landscape and signals that tech companies are increasingly looking toward innovative solutions to meet the power needs of data-heavy applications like AI.

Originally reported by Lamar Johnson in Construction Dive.