Meta (Facebook and Instagram’s parent company) says it has struck a deal to buy geothermal power from Sage Geosystems to supply its U.S. data-centres.
Why?
Meta’s deal with Sage Geosystems is part of its push to support its sustainability goals while trying to meet the growing energy demands of its AI infrastructure. Geothermal energy offers a continuous, carbon-free, and reliable power supply, unlike intermittent sources like solar and wind, thereby ensuring stable operations for energy-hungry AI technologies. Also, by diversifying its energy mix, Meta can enhance its resilience and reduce reliance on a single source, thua partnering with Sage supports clean energy innovation and offers long-term cost efficiency through geothermal’s stable operating costs.
What Kind of Deal?
Although the financial terms of the deal have not been disclosed, Meta says its new partnership with Sage Geosystems is a “first-of-its-kind project exploring the use of new, advanced geothermal energy in parts of the country where it has not been possible before”.
Meta says the first phase of its project to use geothermal energy and utilise Sage’s proprietary Geopressured Geothermal System (GGS) to provide carbon-free power for Meta’s data-centres, will aim to be online and operating in 2027. As part of this partnership with Sage, Meta hopes to deliver “up to 150 MW of new geothermal baseload power” to support its data-centre growth.
It’s also worth noting here that the geothermal energy from Sage Geosystems will not actually be directly supplying each data-centre, but will feed the power grid. Meta could use renewable energy credits (RECs) and geothermal energy can help stabilise energy prices.
Geothermal Can Save Costs For Meta
Meta has been overhauling its infrastructure to support AI workloads, refitting data-centres to accommodate AI-optimised chips. This AI push has driven up its expenses. For example, Meta has forecast $37-40 billion in capital expenditure for 2024 and warned that infrastructure costs will keep rising in 2025. Geothermal energy offers a cost-effective, stable power source, helping to manage these growing operational costs while ensuring reliable energy for its AI-driven operations.
Geothermal Energy – GGS Will Use Advanced Drilling
In Meta’s announcement of the deal, it highlighted how geothermal energy is a viable, renewable energy source across the US and how advanced geothermal energy is already being used in Nevada, Utah, and California.
However, Sage’s Geothermal Geosystems (GGS) technology aims to tap into geothermal energy by accessing heat from deeper underground than traditional methods. Using advanced drilling and reservoir engineering techniques, GGS can create geothermal systems in areas that were previously unsuitable for geothermal energy. This technology allows for broader geographic access to geothermal power, making it possible to deploy geothermal energy across the U.S. and beyond, even in regions without naturally occurring geothermal hotspots. Meta has, therefore, highlighted that one of the key advantages of its deal with Sage is that Sage’s technology can access geothermal energy virtually anywhere, giving hot dry rock as an example of a vastly abundant resource compared to traditional hydrothermal formations. This is why Meta believes Sage’s GGS technology is a highly scalable approach with the potential for rapid expansion across the US and globally.
Other Tech Companies Using Geothermal Too
Several major tech companies, in addition to Meta, have explored or invested in geothermal energy to power their data-centres or other operations. For example, these include:
– Google. Back in 2021, Google announced partnerships with companies like Fervo Energy to integrate next-generation geothermal power into its energy portfolio. Google aims to run its data centres on 100 per cent carbon-free energy by 2030, and geothermal energy is part of its plan to provide a continuous, reliable power source.
– Microsoft has also shown interest in geothermal energy as part of its broader renewable energy initiatives. The company is committed to becoming carbon-negative by 2030 and removing its historical carbon emissions by 2050. Microsoft has, therefore, invested in various clean energy projects, including exploring geothermal energy to power its operations and data-centres, especially as it looks for sustainable energy sources that can meet the growing demand from AI and cloud computing.
– Apple. As part of powering all its global operations with renewable energy by 2018, the company has heavily invested in solar, wind, and biogas projects. However, it has also explored geothermal energy, particularly in regions like Nevada, where it has data-centres and renewable energy projects.
What Does This Mean For Your Business?
Meta’s move to adopt geothermal power is a significant development, not only for its own operations but also for the broader business landscape. For Meta, the shift represents a strategic solution to the growing energy demands of its AI-driven infrastructure. As the company continues to expand its data-centres and refit them to support AI-optimised chips, geothermal energy offers a stable, cost-effective power source. This could help Meta manage its rising operational costs while contributing to its sustainability goals. For businesses like Meta that rely on large-scale AI processing and data storage, accessing renewable energy solutions like geothermal will become increasingly important in maintaining both operational efficiency and environmental responsibility.
Meta’s customers stand to benefit from this shift as well. As the company scales its AI capabilities, users can expect improved performance, reliability, and potentially lower costs passed on from energy savings. For those concerned about sustainability, Meta’s commitment to geothermal energy demonstrates a tangible effort to reduce its carbon footprint (as well as costs), aligning with the growing demand from consumers and businesses for greener practices.
This partnership also signals significant growth for geothermal energy and advanced technologies like Sage Geosystems’ Geopressured Geothermal System (GGS). By tapping into deeper geothermal resources, Meta and Sage could pave the way for the broader adoption of geothermal energy, making it viable in regions previously unsuitable for this form of power. As this technology scales, more businesses should have access to stable, carbon-free energy, supporting the growth of AI, cloud computing, and other data-intensive operations.
For competitors and the wider tech industry, this development highlights the increasing importance of renewable energy solutions. Companies like Google, Microsoft, and Apple are already exploring geothermal energy as part of their sustainability strategies, and Meta’s entry into this space raises the bar for the industry. The shift towards geothermal highlights how AI-driven businesses are rethinking their energy sources, and as AI continues to grow, we can expect more companies to follow suit in embracing renewable energy to power their operations.