Meta and XGS Energy have announced a $1 billion partnership to develop a groundbreaking 150-megawatt (MW) geothermal energy project in New Mexico. The initiative will use XGS Energy’s proprietary geothermal technology to provide clean, baseload electricity to support Meta’s growing energy needs, particularly its AI-driven data center operations in the state. As reported by Source NM, Governor Michelle Lujan Grisham said the project combines clean energy innovation with job creation and economic development without burdening taxpayers.
The project marks a significant leap in geothermal innovation, deploying XGS’s “closed-loop” geothermal system, which extracts heat from hot rock deep underground without using water or requiring specific subsurface conditions like permeable rock. According to the press release, this water-independent system unlocks the potential to deploy geothermal energy in previously unviable regions. Currently, New Mexico has only one operating geothermal plant, but this new project alone is expected to increase the state’s geothermal electricity output tenfold.
During the announcement event in Santa Fe, state officials, Meta representatives, and XGS executives highlighted the project’s potential impact. Urvi Parekh, Meta’s Global Head of Energy, said the advanced technology makes geothermal a scalable solution to meet the round-the-clock power demands of AI infrastructure. XGS CEO Josh Prueher emphasized New Mexico’s “easy and inviting” development environment, citing favorable geology, a trained energy workforce, and streamlined permitting, as ideal for rapid geothermal expansion.
The first phase of the project is expected to go online before 2030, with both phases feeding into the PNM electric grid. According to the governor, the development will require a small surface footprint, just 15 acres for enough capacity to power 50,000 homes, and will create approximately 3,000 construction jobs and 100 long-term operations roles. While specific locations for the geothermal plants have not been finalized, a map presented by state officials suggested that areas in Sandoval, San Miguel, Doña Ana, Catron, and Hidalgo counties are under consideration.
The announcement coincided with the release of a 238-page academic report titled The Future of Geothermal in New Mexico, compiled by Project InnerSpace, New Mexico Tech, and the New Mexico Bureau of Geology and Mineral Resources. The study identifies over 160 GW of untapped geothermal potential across the state, more than 15 times New Mexico’s current total energy capacity. State Energy Secretary Melanie Kenderdine stressed the need for accelerated mapping of underground resources to balance geothermal development with other emerging uses such as carbon sequestration and geologic hydrogen.
Meta is one of the world’s largest corporate purchasers of clean electricity. By partnering with XGS, the Big Tech is not only securing low-carbon power for its facilities but also helping to position geothermal as a major contributor to the nation’s energy transition.
by: João Fernando
