Meta Platforms has announced a major deal to purchase up to 150 megawatts (MW) of geothermal energy from Sage Geosystems to power its data centers across the United States. The agreement, disclosed on Monday, is part of Meta’s strategy to support its extensive investments in energy-demanding artificial intelligence (AI) technologies.
The first phase of this geothermal project is expected to be operational by 2027, marking a significant boost in the use of geothermal energy in the U.S. Although the exact location of the geothermal site has not been determined, it will be situated east of the Rocky Mountains.
The financial details of the agreement were not made public. Geothermal power, a renewable energy source that harnesses the Earth’s internal heat to generate electricity and heat, is seen as a sustainable solution to meet growing energy needs. The 150 MW capacity is equivalent to the electricity consumption of approximately 38,000 homes.
Meta’s announcement coincided with a U.S. Department of Energy event focused on advancing geothermal energy. This move aligns with President Joe Biden’s push for major technology companies to invest in clean energy to mitigate the environmental impact of their increasing energy demands, driven partly by the rise of generative AI technologies.
Sage Geosystems, based in Houston, is a relatively new player in the geothermal sector, having developed next-generation technology that is adaptable to more locations than traditional geothermal systems, which typically depend on natural underground reservoirs of hot water. The project with Meta represents Sage’s largest undertaking to date.
The company, supported by oil and gas firms Chesapeake Energy and Nabors Industries, along with venture capital entities Virya and Helium-3 Ventures, has only recently begun deploying its technology in the field.
A Meta spokesperson indicated that the geothermal energy supplied by Sage would contribute to the power grid rather than being directed to specific data centers. This initiative is part of Meta’s broader effort to modernize its infrastructure to support AI operations, which has led to a significant increase in capital expenditure. For 2024, Meta has projected capital expenditures between $37 billion and $40 billion, with infrastructure costs expected to continue driving expense growth into 2025.
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