Big Tech is on the hunt for energy sources to meet the growing demand for clean, reliable power for artificial intelligence-driven data centers. Developers are eyeing nuclear energy, natural gas with CCS, and recently, geothermal. META recently inked a deal with XGS Energy, an advanced geothermal startup, for 150 MW of geothermal power to fuel its expanding New Mexico data centers. The project will be carried out in two phases, projected to be operational by the end of the decade. The research from Enverus Intelligence® Research shows that while enhanced geothermal is more costly than other pathways, strong power purchase agreements like the one MSFT signed for Three Mile Island’s restart demonstrate hyperscalers’ willingness to pay premiums for reliable, clean power. Together with advancements in drilling techniques and skyrocketing costs for new gas builds, this gives geothermal a competitive edge over technologies like nuclear and gas with CCS in powering the next wave of data centers.
As geothermal energy gains traction and developers continue to demonstrate their ability to operate on a commercial scale, project economics will improve, mitigating risk and lowering project financing costs. Fervo Energy, an enhanced geothermal developer, set a record this month by drilling its deepest, hottest well at 15,765 ft with a projected bottomhole temperature of 520 F in just 16 days — 80% faster than the Department of Energy’s benchmark. The day after the announcement, Fervo secured an additional $206 million in project financing for its Utah Cape Station project, which is expected to deliver 100 MW of clean baseload power by 2026 and an additional 400 MW by 2028.
DID YOU KNOW?
Companies like Exceed Geo Energy are turning to supercritical carbon dioxide as the working fluid in advanced geothermal systems. With the density of a liquid and the flow properties of a gas, sCO₂ offers superior heat transfer and power conversion.
Research Highlights:
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- Caithness Sneak Peek Valuation – PJM Assets Justify a Premium – Enverus Intelligence® Research (EIR) examines the potential market value of Caithness Energy’s power generation portfolio and the key factors that impact its valuation.
- EVOLVE 2025 – The Energy World in 2050: Make a Call – Our primary energy outlook to 2050 is a data-driven forecast that focuses on what EIR sees as the “most likely” outcome, not an all-encompassing range of scenarios. In this presentation prepared for EVOLVE 2025 we see a future where power demand doubles, oil demand peaks and renewables grow, albeit with the robust support of natural gas. All our calls are underpinned by an oil and gas supply picture that is underwhelming and not supportive of net-zero emission ambitions, but ultimately bullish commodity prices.
About Enverus Intelligence® | Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
