Geothermal energy startups rise as tech giants seek clean power for AI

The quest for sustainable power sources among tech and energy sectors.

 Mountain, Nature, Outdoors, Water, Eruption, Geyser, Volcano, Scenery

Geothermal energy is gaining momentum as Big Tech companies like Meta and Google turn to it to power their energy-hungry AI data centres. Startups such as Fervo Energy and Sage Geosystems are partnering with these firms to harness geothermal’s promise of carbon-free, reliable electricity. Unlike wind and solar, geothermal energy offers consistent power, though it faces challenges like high drilling costs and long approval timelines.

Oil and gas companies are also showing interest. Devon Energy and other mid-sized producers are investing in geothermal to meet their own energy needs. However, major oil players like Chevron and Exxon Mobil remain focused on natural gas, promoting it alongside carbon capture technology to reduce emissions.

Interest in geothermal is expanding, particularly in Texas, where abundant resources and streamlined regulations attract new projects. More than 60 geothermal startups have emerged in recent years, supported by improving investment conditions and bipartisan government initiatives like the CLEAN Act and HEATS Act. If these laws pass, they could further boost the sector by simplifying project approvals.

With geothermal’s competitive costs—averaging $64 per megawatt-hour—it may become a key part of a diverse energy mix. As AI-driven data centres grow, the demand for clean and consistent power is driving geothermal’s rise, offering a potential alternative to traditional fossil fuels.