XGS Energy and Meta to Partner on $1bn advanced geothermal project in US

XGS Energy, Inc. and Meta Platforms, Inc. – formerly known as Facebook – have formed a partnership to advance a 150-MW, $1bn geothermal initiative in New Mexico in the southwestern US.

The partnership is a “big damn deal” for green energy production in New Mexico, said Governor Michelle Lujan Grisham when she and senior executives from the companies announced the project.

This collaboration will use XGS’s unique closed-loop geothermal system, which operates without ongoing water consumption, and will connect to the Public Service Company of New Mexico (PNM) grid.

The energy produced will help supply Meta’s local data centres.

“We’re pleased to support Meta’s ambitious AI objectives and accelerate access to new round-the-clock power supplies,” said Josh Prueher, CEO at XGS Energy. “More broadly, the state of New Mexico is a growing hub for data centre development. We are eager to feed clean, water-independent geothermal power into the New Mexico market at a scale uniquely possible with XGS technology.”

Unlike traditional geothermal setups, which often rely on water sources and specific subsurface conditions, XGS’s advanced geothermal system can harness heat from dry, impermeable rock.

This innovation allows for electricity generation in areas once considered unsuitable for geothermal energy.

New Mexico, currently home to just one geothermal plant, is situated above some of the highest-quality hot rock zones in the nation. This single project alone could expand the state’s geothermal output by ten-fold.

“Advances in AI require continued energy to support infrastructure development,” said Urvi Parekh, global head of energy at Meta. “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 centre development. We’re excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico.”

A newly published study, The Future of Geothermal in New Mexico – produced by Project InnerSpace, New Mexico Tech, and the state’s Bureau of Geology and Mineral Resources – highlights over 160 GW of unexploited geothermal energy potential.

“New Mexico is not only the second-largest oil and gas producer in the US, but also one of the nation’s leading sources of clean energy,” said Governor Lujan Grisham. “We’ve worked hard to ensure New Mexico remains at the forefront of the energy transition, and geothermal energy represents a promising new frontier.

“Project InnerSpace’s report outlines both the scale of New Mexico’s geothermal potential and practical steps to develop it. XGS Energy and Meta’s 150 MW project will create good-paying jobs, strengthen our grid with reliable baseload power, and position our state as a national leader in next-generation renewable energy,” she added.

The agreement includes two development phases: an initial smaller stage followed by a second, larger rollout, both targeting full operation by 2030. Each phase will connect to the PNM network in New Mexico.

This effort adds to Meta’s portfolio as one of the largest corporate purchasers of renewable electricity worldwide and coincides with XGS’s expansion to support a growing pipeline of global projects totalling multiple gigawatts.