Social network firm Meta has signed an agreement with enhanced geothermal energy firm XGS Energy to support the development and deployment of a 150MW project in New Mexico.

When operational, the project is expected to supply energy to the PNM electrical grid and power Meta’s data center portfolio across New Mexico.

“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 center development. We’re excited to partner with XGS to unlock a new category of energy supply for our operations in New Mexico.”

The agreement will comprise two phases across two separate projects. The companies did not disclose the size of each phase but noted both are projected to be operational by 2030.

“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 center development. We are eager to feed clean, water-independent geothermal power into the New Mexico market at a scale uniquely possible with XGS technology.”

XGS enhanced geothermal technology utilizes a sealed pipe within a pipe, which it claims prevents fluids from touching the rock or escaping into the earth. Through this, the company says its system can be deployed more widely as it doesn't rely on groundwater to function.

As a result, XGS contends that it is able to decouple geothermal energy production from historical location-based constraints such as water availability or permeable or porous rock, which in turn opens up new frontiers for geothermal development.

XGS has pinpointed New Mexico as one of these new frontiers. Citing research from the National Renewable Energy Laboratory, the company claims that New Mexico sits atop some of the best hot rock resources in the country.

XGS was founded in 2008 and is headquartered in Palo Alto, California. The company recently closed a $13 million equity bridge round and has announced plans to commence an equity growth round of between $60 million to $100 million, according to reporting from Axios.

The deal is Meta’s second with an enhanced geothermal firm, having signed a deal with Sage Geosystems for 150MW of power in August of last year. The first phase of the project is expected to be online and operational by 2027, with the project located “east of the Rocky Mountains.”

Google has also backed geothermal energy as a potential key player in its energy mix moving forward. Last June, the company inked a deal with Nevada utility NV Energy and geothermal firm Fervo for 115MW of geothermal power. In addition, the company also signed a 10MW Power Purchase Agreement (PPA) with Baseload Capital for geothermal energy in Taiwan.

Microsoft has also gotten in on the act. In 2023, the tech giant signed a 10-year PPA with Contact Energy for 51MW of power in New Zealand. The company also partnered with G42 to construct a data center in Kenya that will be run exclusively on geothermal energy.