Meta, the parent company of Facebook and Instagram, is doubling down on its clean energy strategy by signing a new agreement with XGS Energy to develop up to 150 megawatts of next-generation geothermal energy in New Mexico, the company announced Thursday.

The partnership will support Meta’s growing data center operations in the state, ensuring carbon-free electricity for its expanding digital infrastructure. The deal represents the company’s second investment in geothermal energy, following a 2024 agreement with Sage Geosystems to develop similar capacity east of the Rockies.

According to a June 12 press release, the XGS project will be developed in two phases and completed by 2030, helping address the massive energy demands required by artificial intelligence (AI) and cloud computing. Meta said the collaboration is part of its broader commitment to powering its global operations with 100% renewable energy.

“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.”

The agreement also signals a major investment in New Mexico’s clean energy economy. According to Gov. Michelle Lujan Grisham, the project will result in a $1 billion private sector investment, creating 3,000 construction jobs and 100 permanent jobs once the plant becomes operational.

“We’ve worked hard to ensure New Mexico remains at the forefront of the energy transition, and geothermal energy represents a promising new frontier,” Lujan Grisham said in the announcement. “This collaboration will strengthen our grid and position us as a national leader in next-generation renewable energy.”

Unlike traditional geothermal plants that rely on water and specific geologic conditions, XGS’s proprietary technology eliminates the need for operational water and porous rock formations, allowing geothermal to be deployed in more locations.

The project is expected to increase New Mexico’s geothermal energy production tenfold, according to XGS. It will also help decarbonize a sector known for its round-the-clock energy needs, something intermittent sources like wind and solar cannot fully address on their own.

Meta and XGS framed the partnership as a model for corporate-backed clean energy development, particularly as companies search for firm, carbon-free power that doesn’t depend on the weather.

“We are pleased to support Meta’s ambitious AI objectives and accelerate access to new round-the-clock power supplies,” said Josh Prueher, CEO of XGS Energy. He also praised New Mexico as “a growing hub for data center development.”

The deal comes as corporate interest in geothermal energy surges, with startups attracting record levels of investment. In March, Fervo Energy raised $255 million to scale geothermal operations nationwide. Meanwhile, Mastercard announced plans to use geothermal energy to heat and cool its New York headquarters, cutting its dependence on natural gas.

XGS itself recently closed a $13 million funding round in March to advance its scalable, water-free geothermal technology.

As large tech companies increasingly turn to geothermal to meet sustainability goals and support AI-related power demands, Meta’s partnership with XGS is yet another signal that the geothermal market is gaining serious traction — and fast becoming a central part of the clean energy transition.

Originally reported by Lamar Johnson in Construction Dive.