Meta-backed enhanced geothermal firm Sage Geosystems has closed a $97 million Series B funding round, led by Ormat Technologies and Carbon Direct Capital.

The capital will support the deployment of Sage’s first commercial pressure geothermal power generation facility at an existing Ormat power plant. The plant's location and deployment timeline were not disclosed.

Unlike conventional geothermal power, enhanced geothermal, such as Sage’s, utilizes techniques honed in fracking to extract geothermal heat energy from hot dry rock, which is more abundant than natural hydrothermal reservoirs and offers substantially higher generation potential. The deal with Ormat is expected to accelerate the time needed to bring the technology to market, as well as to scale up to meet growing demand in the sector.

“Pressure geothermal is designed to be commercial, scalable, and deployable almost anywhere,” said Cindy Taff, CEO of Sage Geosystems. “This Series B allows us to prove that at commercial scale, reflecting strong conviction from partners who understand both the urgency of energy demand and the criticality of firm power.”

Sage’s system works by drilling paired wells up to depths of 20,000 feet into hot rock at temperatures of 180°C (356°F) or higher. In each well, it creates an artificial “lung-like” reservoir that is filled with water. The rock’s natural elasticity allows it to flex and contract, storing pressure in addition to heat. One well produces hot, pressurized water to a surface power plant while the other recharges and reheats, with the two switching roles daily.

The system is also designed to be modular, enabling exponential scaling of the technology. The US has huge geothermal potential, with the International Energy Agency (IEA) offering estimates of at least 7TW of capacity at depths less than 5km (3.1 miles), and more than 70TW is accessible across all depths. Most of the potential capacity is located in the Western US, specifically in California, Nevada, Utah, Oregon, and New Mexico.

This immense energy potential has drawn hyperscalers in, with Meta signing an agreement with Sage in August 2024 for up to 150MW of power to support its data centers. The first phase of this project aims to be online and operational in 2027. Meta followed this up in June of last year, inking a deal with XGS Energy to support the development and deployment of a 150MW project in New Mexico.

Ormat, a vertically integrated geothermal and energy company, signed its first geothermal deal with a data center company earlier this month, entering into a 20-year Power Purchase Agreement (PPA) with Switch.

Google, too, has gotten in on the act, inking a 10MW PPA with Baseload Capital in Taiwan and a power supply deal with Nevada utility NV Energy to procure 115MW of renewable energy from a geothermal power plant operated by Fervo Energy.