Meta partners with Sage for geothermal power in the US

Meta Platforms has partnered with Sage Geosystems to source geothermal energy for its US data centres. The agreement supports the company’s expanding AI infrastructure, which demands noteworthy power. However, the initial phase of the 150-megawatt project, expected to be operational by 2027, will significantly boost the use of geothermal energy in the United States. While the exact location remains undecided, it will be east of the Rocky Mountains.

The deal aligns with the Biden administration’s push for clean energy investments from tech giants as they face growing electricity demands driven by AI advancements. Adopting AI technologies, particularly generative AI, is fuelling a rapid increase in electricity consumption, potentially complicating efforts to decarbonise the power sector by 2035. The Sage project represents Meta’s largest foray into renewable energy, a strategic move to manage rising infrastructure costs.

Sage Geosystems, a Houston-based startup, is pioneering next-generation geothermal technology that can be deployed in more locations than traditional methods. The company, supported by oil and gas firms Chesapeake Energy and Nabors Industries, validated its technology just two years ago, marking a significant step forward in the renewable energy sector.

Meta has been aggressively upgrading and expanding its infrastructure to support AI developments, substantially increasing expenses. With capex projected to reach up to $40 billion in 2024, the company expects infrastructure costs to remain a major expense driver in the coming years.